Question about equity structure – I am a co-founder of a tech startup and am trying to determine right now how many shares to issue across our founding team. I've been trying to do my research and I hear a lot of people saying not to create multiple classes of shares early on, but no one says why other than "to keep things simple." We are planning on offering equity to some of the founding team who are putting in casual hours here and there (not really acting as founders) as an incentive but don't want to give them voting rights. Hence, the need for 2 share classes. Will this turn investors off?
Question about equity structure – I am a co-founder of a tech startup and am trying to determine right now how many shares to issue across our founding team. I've been trying to do my research and I hear a lot of people saying not to create multiple classes of shares early on, but no one says why other than "to keep things simple." We are planning on offering equity to some of the founding team who are putting in casual hours here and there (not really acting as founders) as an incentive but don't want to give them voting rights. Hence, the need for 2 share classes. Will this turn investors off?