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I'm wondering what happens to the cap table now. Lets say after many raises the investors own 50% of the company and 50% is founders and employees. If the compa
by mooktakim 8y ago
I'm wondering what happens to the cap table now.
Lets say after many raises the investors own 50% of the company and 50% is founders and employees.
If the company borrows money to buy out the investors, does that mean the 50% owned by founders/employees turn into 100%?
I'm thinking the valuation would still remain the same, which means suddenly their value goes up significantly.
- OiNG 8y agothe valuation would have to drop to account for the debt the company took on.