For startup founders, few concepts are as important—or as commonly misunderstood—as dilution. It often first arises during a financing round, when investors receive equity (i.e., shares) in exchange ...
Anti-dilution protection in VC agreements shields earlier investors by preventing ownership dilution from new shares issued at lower prices. Anti-dilution protection is like a safety net for investors ...
Founders frequently underestimate the equity dilution impacts of funding rounds and employee stock option plans (ESOPs). Consider two stark examples: Eric Yuan's ownership in Zoom dwindled to 22% by ...
When a closely-held business is profitable, self-interested owners naturally want a bigger slice of the pie, especially where the personal relationships among the owners are frayed. Perhaps that’s why ...