# What is the Grove Network

The Grove network is a private network of venture-backed founders who share a small percentage {^1} of their future exit liquidity.{^2} Because Grove combines personal exit income {^3} and not equity (registered share ownership), Grove is frictionless: founders do not require board consent, shareholder approval, there are no cap table changes, nor are there tax consequences of joining the network.

Footnotes

Usually 1 – 3%, depending on present-day valuation
Defined as the founder receiving any cash or cash equivalents from selling shares or tokens in a buyout, secondary, IPO, or similar liquidity scenarios
The legal structure is income pooling