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The detail gives you a clue: The purchase, at $21.50 a share for about a 1 percent stake, was from existing shareholders and doesn’t represent new investment
by weego 16y ago
The detail gives you a clue:
The purchase, at $21.50 a share for about a 1 percent stake, was from existing shareholders and doesn’t represent new investment
- blacksmythe 16y agoIt is true that existing shareholders might not price the round fairly if they have ulterior motives on the pricing. However, frequently insider funding rounds are at realistic valuations, or even unrealisticly low valuations, to force all existing shareholders to participate or be diluted.