FEBRUARY 1, 2018
It is highly typical for a startup to have small investors on its cap table. In this situation, the FFAs are diluted from an ownership percentage, but enhanced economically. Or the economy tanks or stock market tanks moving valuations down at inopportune times for the startup. The short answer is that we completely believe that ALL investors (including FFAs) should have preemptive rights (just the right to invest in future rounds on a pro rata basis).