4 ms·
It is true that existing shareholders might not price the round fairly if they have ulterior motives on the pricing. However, frequently insider funding rounds
by blacksmythe 16y ago
It 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.