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This answers my question, thank you. I had never thought of the company itself creating more shares, this is what I was missing in my thought process.
by howeyc 13y ago
This answers my question, thank you.
I had never thought of the company itself creating more shares, this is what I was missing in my thought process.
- beachstartup 13y agothis is also how dilution happens - more shares are issued, and then everyone with existing shares owns a smaller % of the total amount. VCs everywhere will always prefer to work with their lawyers to make sure this goes in their favor. it pays to use your own lawyer so that all of this stuff happens on your own terms. lawyers are responsible to the party who pay their fees, so watch out if anyone seems overly generous with helping you out with legal bills.