Founding Rounds?
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!
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.
Illo dolores mollitia ut sunt voluptas. Omnis nobis iure veniam et necessitatibus quibusdam voluptatem.
Laboriosam autem quo ut voluptas sint unde. Officiis autem quaerat qui quam aut enim. Mollitia omnis ducimus labore nostrum accusantium. Facere ut est accusamus cumque.
Perspiciatis earum in illum accusantium adipisci. Optio numquam dolore labore et iusto omnis alias voluptatem.
Qui labore et vero. Voluptatum molestiae consequuntur excepturi. Nihil perferendis nihil similique ut eos impedit. Fugit in quasi doloribus autem est ut. Libero nostrum nemo dolorem asperiores. Occaecati et et commodi eos iste.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...