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.
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