4 ms·
TL;DR it is not fair to take the per-share valuation at the last round of funding and apply it to all stock if the newly issued stock has preferential rights.
by tomblomfield 9y ago
TL;DR it is not fair to take the per-share valuation at the last round of funding and apply it to all stock if the newly issued stock has preferential rights.
10 apples are worth $100. 90 oranges are not therefore worth $900.
- akud 9y agoWell, also that the act of creating the apples devalued the oranges.