Some pre-seed and seed investors are happy to take common stock/ordinary shares saying that it aligns them more with the founders. As much may be so, but if they plan to exit via secondary (the most common exit these days), good luck to selling them. (100% human generated content, no LLM used)
Rokas P.
6h
if founders say you should be ordinary to be more aligned, its a red flag for me generally, as they are not optimizng for upside, they are optimizing for downside (never will build a big business / venture backable)
Totally agree — but hard to imagine anyone was thinking about secondaries as an exit a few years back. Funny how that’s now one of the most common paths
Building new things
8hIt's also totally inoffensive to a founder and so giving up buys you nothing.