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Do you mean in a down round or just a round at a low price? In my experience, any down round requires massive changes to ownership across the cap table, previo
by akharris 5y ago
Do you mean in a down round or just a round at a low price?
In my experience, any down round requires massive changes to ownership across the cap table, previous rights or not. The only way to stop this is with even more onerous terms that one doesn't normally see in VC term sheets.
- sytse 5y agoI mean a round on an artificially low price. This is an contrived example: founders own the majority of the company and fundraise $1 from themselves at $1.01 post, wiping out existing investors.