Ask the Collective

What share classes should founders offer to first-round investors?

Members typically recommend issuing **Ordinary B shares** to first-round investors, rather than standard Ordinary shares, particularly when you want to retain control and differentiate investor rights from founder shares. **Key structure recommendations:** - **Ordinary B shares** — the standard approach for first-round investors; provides flexibility on voting rights depending on investment size and negotiation - **Founder shares with double voting rights** — give yourself enhanced voting control even if investors hold a significant equity stake; multiple members endorsed this approach to maintain decision-making authority **Consideration:** The choice between voting and non-voting B shares depends on how much the investor is committing and your preference for governance control. Members did not elaborate extensively on non-voting structures, suggesting voting rights are the norm in early rounds.