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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

Typically, investors will be interested in “preferred” stock, which comes with special (aka “preferred”) rights, such as receiving a certain payout before anyone who holds “commonstock. The ownership structure of an LLC is a blank slate. Down the line, a potential buyer may prefer the predictable structure of a corporation.

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Why Uber is The Revenge of the Founders

Steve Blank

A version of this article is in the Harvard Business Review. Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. VCs competing for unicorn investments have given founders control of the board. This seems to be occurring more and more.

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