Eduardo Saverin's Odyssey on Facebook: When the Co-founder Lost His Empire

RetailTherapist · 2026-02-28T08:15:38+00:00

Eduardo Saverin, co-founder of Facebook, saw his 34.4% stake reduced to 0.03% after corporate decisions that prioritized external growth. His story illustrates how conflicts of interest can marginalize founders in startups.

RetailTherapist

2026-02-28 08:15:38

Abstract generation in progress

When Eduardo Saverin showed up at Facebook’s offices, he did so with the confidence of someone who had bet everything on a vision. He had invested his money, his time, and his reputation into the company. But what seemed like a solid partnership ended up being one of the most controversial expulsions in tech history. 💼

When he was shown the new capital documents, Eduardo Saverin realized the extent of the change that had occurred behind his back. His 1,388,334 shares, representing 34.4% of the company, had been drastically reduced to 0.03%. What was once a potential fortune had become an insignificant stake.

Funding Rounds: The Diluter of Fortune

During Facebook’s early funding rounds, Mark Zuckerberg and the new investors pushed structural changes that, while legally sound from a corporate perspective, left Saverin practically out of the project. As new shares were issued to attract external capital, his ownership percentage faded on paper.

This case became an example of how conflicts of interest, strategic dilutions, and power dynamics can turn a founder into a marginal shareholder. Eduardo Saverin would learn that in the fast-paced world of startups, initial loyalty doesn’t always protect against corporate decisions that prioritize external growth over the rights of the original founders.

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