Pre-Issue Shareholding

It refers to the ownership structure of the company before an Initial Public Offering. When a company starts its business, different investors invest in the company and they all have a stake in the company. Founders, early investors and institutional investors have ownership and voting rights in the company. It determines how many shares are held by the existing shareholders.

In this table:

• "Founders" are the individuals who started the company. They hold 10,000 shares, representing 50% ownership.
• "Early Investors 1" and "Early Investors 2" are individuals or entities who invested in the company in the initial phase. They hold 5,000 and 3,000 shares, representing 25% and 15% ownership.
• The "Employees" may have received shares as part of their remuneration package. They hold 1,000 shares, representing 5% of ownership.
• The term "venture capital" refers to investment firms that have provided capital to the company in exchange for shares. They hold 1,000 shares, which also represents 5 % ownership.