Economy
Down rounds severely punish early investors with dilution
HERE’S THE INTERESTING PART
The harsh reality check of the startup world hits early investors directly in the wallet. When a desperate company is forced to raise capital at a lower valuation than their previous funding round, it is called a down round. This triggers aggressive anti-dilution clauses, mathematically obliterating the ownership percentages of the founders and early believers.
One discovery leads to another.
Keep exploring facts in this topic.
Economy →
