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Dictionary by pitch.dog
Cap table, ownership & dilution · Core

Founder ownership

Also called: founder equity

ELI5

The founders' share of the company.

Used in conversation

“Founder ownership declines across rounds and employee grants.”

Definition

The portion of the company owned by its founders under a stated basis.

Here “Founder ownership” means: The portion of the company owned by its founders under a stated basis.

Pitch context

You will see “Founder ownership” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches cap table, ownership & dilution.

Why it matters: In cap table, ownership & dilution, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.