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Glossary Term
Founder's Shares
Definition
Founder’s Shares are equity shares allocated to the founding members of a company at its inception, often granted at a favorable valuation to recognize the founders’ contributions and risks in establishing the business. These shares typically include special rights, such as enhanced voting power or restrictions on transfer, to maintain the founders’ influence during early growth stages.
Relevance to the MedTech Industry
In the capital-intensive MedTech industry, founder’s shares incentivize and reward the individuals who take the risk of starting the company. They align the founders’ interests with the company’s long-term success, ensuring continuity and leadership focus during the development of innovative medical devices and technologies.
Additional Information & Related Terms
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