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I’m not a YC company founder but that’s not how I understand their terms to work. They can follow in subsequent rounds to maintain their percentages but they ar
by wjossey 8y ago
I’m not a YC company founder but that’s not how I understand their terms to work. They can follow in subsequent rounds to maintain their percentages but they aren’t “locked in” at 7%.
—-Edit——
Yeah. They have pro rata rights to follow in their agreement.
- jtbayly 8y agoSo... which is it? I don't know what "pro rata rights to follow in their agreement" means. Are they "locked in" at 7% regardless of other funding rounds or do they have the option to buy in to future rounds to keep 7% ownership?
- wjossey 8y agoThey have an option to buy to maintain their stake. They are not locked in and get diluted like everyone else.