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The general theme is... Before: You and your cofounders share 100% of the stock in your company that's valued at $X. After: Your company now has everything it
by corysama 2y ago
The general theme is...
Before: You and your cofounders share 100% of the stock in your company that's valued at $X.
After: Your company now has everything it had before plus $Y worth of "something" from the VCs. Your company is now valued at $X plus $Y. The VCs now hold stock in your company worth $Y. You and your cofounders still hold stock your company worth $X.
"Something" might be anything. Cash, stocks, commitments to resources, whatever.