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Founder's Stock

Stock that a founder of a company receives in exchange for the initial investment of cash and/or services, or stock sold at a nominal price (with or without vesting restrictions) to early-stage employees of a company. While this type of stock is usually not a different class of stock, it can be a different class, or it can be a form of common stock with special vesting, voting, liquidation, and/or conversion rights.

For details, see explanations from the law firms Cooley, McGuireWoods, and L2.

See also the section Pre-IPO on this website.

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