Equity

Equity represents ownership or the right to a portion of a company. In the startup world, equity is the primary asset negotiated with investors in exchange for financial capital. When a founder “sells equity,” they are giving up a percentage of company ownership, which entitles the investor to a share of future profits (dividends) and a slice of the startup's sale value in a potential liquidity event (exit). Beyond the financial aspect, equity can carry political rights, such as a board seat and voting power in strategic decisions. Careful equity management is vital to ensure founders retain the necessary control and incentive to continue leading the business through successive funding rounds.

Practical Example: Dois fundadores detêm 100% de uma empresa (50% cada). Ao receberem um investimento de R$ 500 mil de um investidor anjo, eles concordam em ceder 10% de participação em troca do aporte. Após a operação, cada fundador passa a deter 45% de equity, enquanto o investidor anjo detém os 10% restantes. Agora, qualquer lucro distribuído ou valor de venda da empresa será repartido nessas novas proporções.

Movie: The Founder — illustrates how brand and business model ownership (equity) becomes the most valuable asset, resulting in the purchase of the original founders' stake for control consolidation.