# 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.

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