When to add a new share class
Adding a new share class can help you:
- Address unique requirements for founders, employees, or investors.
- Structure specific rights like voting, dividends, or liquidation preferences.
Tip: Stick to ordinary shares unless additional rights are absolutely necessary. Overcomplicating share structures can deter investors.
Steps to add a new share class on the FounderCatalyst platform
You can add the new share class to FounderCatalyst. Since ordinary shares are the default, you can create a new share class in your paperwork.
On the platform:
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Navigate to the Company Tab in your FounderCatalyst account.
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Scroll down and select ‘Add Share Class’.
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Input the name and conditions of the new share class.
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Ensure all stakeholders are informed and have approved the updated legal structure.
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Save the new share class in the platform.
If not using FounderCatalyst paperwork
If FC has not created the initial documentation (AoA, SSA), or you want to keep existing documentation, that’s possible, but if you don't currently have a non-voting share class, this is something you'll need to address. Here’s some guidance on that:
