Founder Overhang refers to a situation where a founder’s equity ownership, control rights, or perceived reluctance to dilute can discourage new investors or complicate financing and M&A negotiations. Founder Overhang may also describe concerns that a founder’s large stake could influence governance or exit decisions in ways that are not aligned with other shareholders.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
