Dilution Distribution Recapitalization Sales 
David Teten
JANUARY 19, 2021
When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Their only option is to work with management to try to fix the problems. Early liquidity.
abovethecrowd.com
APRIL 20, 2016
This severely heightens the risk of either running out of money or a complete recapitalization that wipes out previous shareholders (founder, employees, and investors alike). It will also minimize future dilution. Cash distributions are what matter at the end of the day, bug big paper gains still make for good fundraising pitches.
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