Preferred vs. Common Shares
Preferred shares offer some favors, for example, an elevated position in the liquidation events or at the distribution of dividends. Such privileges do not exist on common shares, which are typically held by founders. Negotiation between preferred and common shares boils down to where, how much protection, and return compared to founders and other stakeholders investor will be entitled to.

4. Board Seats and Control
Founders can insist that investors hold seats in the board of directors. This grants the investor oversight into key decisions. Here, they have a say over strategic directions, financial decisions, and hiring executives. Founders should discuss the number of board seats conceded to investors to remain in control of company operations and decision-making processes.