Revolutionizing Voting Rights: Trust versus Control in VC Investments

This week’s World of DaaS LM Brief looks at a recent piece by Auren Hoffman, co-authored with Sushant Bhardwaj and Lily Petherick from Flex Capital, on a little-known but impactful clause in VC term sheets that can strip founders of their voting rights when they leave their company.

We cover how this “employment-tied voting rights” provision, often overlooked until it is too late, can leave founders as shareholders without a voice and why Flex Capital advocates for its removal to foster trust and protect true ownership.

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