Dilution Questions
I have a Delaware entity with full control and I brought a partner that I gave about 45% of the outstanding shares. My partner did not like how I ran the business and left. The original business...
1 point
Once you raise a few rounds of capital, your equity ownership most likely gets diluted to a minority stake. There is nothing that stops the board from firing the founder at this point. How do you...
We are in our first round of startup fundraising. We need $50,000 for business growth and we currently have one investor who is interested in investing $25,000 for 5%. He is concerned with his 5%...
my business partner and i recently decided to terminate our partnership. primarily my decision, but he reluctantly has agreed. we have one concept (a web consumer service/app) that we spent 6...
1 point
We have a startup with 3 co-founders each having 33.3% of the company. So far we have raised 100k internally and split it 3 ways. Now we wanted to raise another 100k round internally. If one...
1 point
I am one of three founders (all part time) of a software start up which is still in early stages. Considerable effort has been logged even though no formal arrangements have been made. We have...
13 points
We are 3 founding partners in an early stage start up. We are all good friends, and just started to negotiate an equity agreement. Our goal is to be fair, but also be fundable, as we will be...
I was recently terminated from a startup without cause, where I was one of several founders owning a decent percentage of stock. We also had an angel investor (incubator) in with us for a small...
48 points
How can I have an idea of the dilution of employee stock options for a company that is going through different rounds of funding? For example, a company that has received a total of $100M funding...
68 points
Excerpt from a Venture Capital book: If an investor with a $100M fund has set aside $5M to invest in a particular company over its life, what proportion of the $5M should it invest in the first...
162 points
How can the co-founders that hold a minority of the shares be protected against: A dilution of his equity (economic and control) triggered by the shareholders that hold a majority of the...
I am a founding investor in a 3 year old startup company and own about 2.5% of the company stock. I was initially involved as a consultant but I haven't been involved for the last 1.5 yrs. The...
The CEO of a LLC early startup plans to assign non-dilutable equity to the founders. Each founder will take a small amount of equity, leaving a pool for future employees and investors. IMHO, what...
62 points
As far as I understand, when the next round happens, the startup emits new shares that are sold to new investors under newly negotiated valuation. Does this lead to the previous investor's shares...
8 points
I am just curious about vesting as against 3 things - Dilution, a Co-founder leaving, a co-founder getting fired Please assume a 2-man team with the equity split among the founder & CEO (A)...
36 points
How would one go about Diluting stock in company and what are the most common situations where dilution occurs?
