Yeah, you're right, that's often the case, especially when you have cofounders and early employees that you don't want to dilute during the first funding round.

Yeah, you're right, that's often the case, especially when you have cofounders and early employees that you don't want to dilute during the first funding round. However, I just wanted to keep the example simple, I thought it was easier to talk about creating shares than deal with the "who owns the unissued shares" notion. But yeah, that's a good clarification.