Abstract
In modern management, the design of equity structure exerts an important influence on the operation and development of a company. A scientific and reasonable equity structure for companies in the early days will prevent and control their own risks in different stages, while the application of information management technology is also indispensable in the current big data environment. Therefore, this paper determined the weight by means of the 0-9 scoring method to evaluate the importance of equity and propose the idea of innovative design for the equity structure in multiple-holding start-ups. Eventually, a tool to optimize equity structure was designed to serve as information management technology for risk prevention and control in start-ups. It can effectively safeguard the rights and interests of all the shareholders based on various ranks, demonstrating the sincerity of the founding team to the greatest extent. By setting a rational proportion and making fine-tuning in accordance with the needs of all stakeholders, both the decision rights of the founding team and the trust of the external investors are guaranteed.
Highlights
1.1.1 Unitary Share Structure Unitary share structure, referring to the integration of equity proportion, voting right and bonus right, is very simple, but the downside is that the business may get stuck. (Wei Min, 2017)
1.1.2 Dual-Class Share Structure Dual-class share structure refers that the proportion of shares, voting rights and dividend right are not equal, which needs to be designed separately according to the shareholders' rights
1.1.3 4*4 Share Structure Based on the dual-class share structure, 4*4 share structure divides the shareholders of the company into four types, namely investors, partners, the founder and employees
Summary
1.1.1 Unitary Share Structure Unitary share structure, referring to the integration of equity proportion, voting right and bonus right, is very simple, but the downside is that the business may get stuck. (Wei Min, 2017). 1.1.2 Dual-Class Share Structure Dual-class share structure refers that the proportion of shares, voting rights and dividend right are not equal, which needs to be designed separately according to the shareholders' rights. This structure exists the same share with different rights-- high-voting stock means more decision-making power, which is an effective method to control the company by separating control from cash flow rights by cross-ownership. Overall arrangements of relevant personnel can be made according to their rights to achieve the goals in advance It is suitable for entrepreneurial or innovative enterprises. It is suitable for entrepreneurial or innovative enterprises. (Wei Min, 2017)
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