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yieldcrv 7 hours ago

A few things, but they work very well for our industry.

The rule is that the nonprofit and disqualified persons (mostly board members), cant own businesses together, well they can but not more than 35% of it together, and a max of 20% can have voting capability

The consequences arent immediate, non profits have 3 years to correct this

Now in the tech industry, getting VCs involved is already the plan from day one and founders get diluted, so getting below 35% is either easy, or easy within 3 years

so they’re fine

there’s a lot of things they can all do to deal with the share consolidation