ownership stakes

How Are Ownership Stakes Distributed?

Ownership stakes are typically distributed based on several factors:
Initial Investment: Those who invest early or significantly usually receive larger stakes.
Founding Team: Founders often divide equity amongst themselves based on their roles, contributions, and agreements.
Employees: Companies might offer equity to employees as part of compensation to attract and retain talent.
Investors: Investors acquire stakes in exchange for capital, usually during various funding rounds.

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