Hi @all, short (and maybe stupid) question: When a startup wants to start a new founding round, do the existing investors have to agree to do so? I mean, if new parties invest, the proportion of the shares of the existing investors decline?
Thanks in advance!
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It depends on the term sheet but generally no. However, most term sheets have some kind of anti-dilution clause that protects them in case the company has a down round.
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