Voting Rights for Small Businesses-Small Business Voting Rights Management

Example

Guidance on creating voting rights structures that balance founder and investor interests, including the implications of preferred shares vs. common shares.

Scenario

A tech startup negotiating with angel investors wishes to retain decision-making control while offering equity. The assistant could suggest structures that allocate voting rights primarily to common shares held by founders, while offering preferred shares to investors with specific financial rights but limited voting power.

Example

Checklist of documents and arguments to present a compelling case for the proposed voting rights structure.

Scenario

A small business seeking seed funding is preparing for a pitch to a group of venture capitalists. The assistant provides a list of key documents, such as cap tables and governance agreements, and advises on how to articulate the fairness and strategic advantages of their voting rights proposal.

Example

Tips and strategies for negotiating with investors, focusing on maintaining a fair distribution of voting rights.

Scenario

Founders are in the late stages of negotiation with potential investors who are pressing for more voting rights. The assistant offers tactics for compromise, such as creating different classes of shares with specific rights attached, ensuring the founders maintain control over key decisions.