# What is equity stake?

Source: https://launch-rec.com/glossary/equity-stake. Category: Ownership. Market: US and UK.

## Definition

The share of a launch business owned by each party. In a backed recruitment launch it defines control, exit proceeds and who decides what.

## In practice

A founder keeping a majority stake keeps direction. What matters more than the headline percentage is the shareholders' agreement: reserved matters, drag and tag rights, and how leaver provisions work.

Compare any offer against what the equity buys — funding, back office, brand, client introductions — not just against the percentage.

## Related terms

- https://launch-rec.com/glossary/shareholders-agreement
- https://launch-rec.com/glossary/vesting
- https://launch-rec.com/glossary/earn-out