Common Stock Dilution Sales Syndication 
David Teten
JANUARY 19, 2021
Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate.
www.paulgraham.com
APRIL 28, 2010
Some angel investors join together in syndicates. Whatkind of anti-dilution protection do they want? For example, VCs generally write it into the deal thatin any sale, they get their investment back first. Theres only common stock at this stage. Startups valuations aresupposed to rise over time. Hell if they know.In
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