![]() ![]() Anti-dilution – The marquee investors keep this clause in the term sheet, which means that when newer rounds of fundings happen, their percentage stake won’t get diluted, and on each fund infusion by an external investor, they receive additional shares at face value, which keeps their shareholding at the same level.In many cases, there is a mismatch in valuation expectations in such cases, the investor takes a convertible instrument which gets converted into equity at a future determined valuation basis the company’s future financial performance. ![]() This is when there is an agreement between the two parties.
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