WHO CONTROLS YOUR STARTUP? WHY GOVERNANCE MATTERS FROM DAY ONE

Summary from the TLDR Founders newsletter

You can own a large share of your company and still lose your job in one board meeting. That happened to Zenefits' cofounder CEO: removing him did not require a shareholder vote. Figma offers a different example, with its cofounder holding roughly 9% of the equity but just over half the voting power. This guide separates ownership, voting rights, and board control. When reviewing a term sheet, work through who appoints each director, who can replace them, and what happens to those rights in the next round.