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Limited company shares explained...
How Many Shares Should Your Startup Authorize?
As a startup founder, you might be grappling with the common challenge of determining the right number of shares to authorize.
Luckily for you, the answer is pretty simple: 10 million.
How many shares should i buy to make a profit
In this article, we'll explore in detailwhy 10 million is the number to authorize—all to help you make informed decisions for your startup's success.
Why most startups authorize 10 million shares:
While there is no magic number that suits every startup, many companies find that authorizing around 10 million shares strikes a good balance between flexibility, employee motivation, and attracting investors.
This is the number investors typically expect to see.
We'll go into a little more detail:
10 million meets investor expectations
Most investors expect to see 10 million authorized shares.
It communicates that you've considered the company's expansion potential, acknowledged the importance of incentivizing your team, and asserted your commitment by retaining a substantial ownership stake.
Why?
Because 10 million is a
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