[apparent]

Seems like 3 is a bit pessimistic. After all, if there are 3 founders then that greatly decreases the chance that the CEO steals equity from the other 2 cofounders. The CEO generally wouldn't have > 50%, so the non-CEO co-founders could keep the CEO in check.

[jagged-chisel]

Seems accurate according to my experience. It’s the new investment banks in later rounds that cause it. Bigger investments, stronger guarantees, better preferences, and lack of understanding on the part of inexperienced founders, plus lack of power held by the employees options pool … recipe for “only the banks see any upside.”

[mikert89]

alot of financial engineering happens if the company is raising large rounds, if you leave early as a cofounder, they will absolutely mess with your equity. And even if you are there, youre considered an expense, unless the CEO explicitly advocates for you

[mikert89]

its so common that I am shocked people willing enter roles like co-founding CTO without serious legal protections in place. go spend time in NYC/SF and talk to actual cofounders

[dnnddidiej]

Is there even a CEO per-se in this situatuon?

[deaux]

Depends on country and type of business entity. Some of them require one legal representative.