Remove Cap Table Remove Founder Remove IPO Remove Preemptive Right

Small Investors

ithacaVC

It is highly typical for a startup to have small investors on its cap table. Founders often raise money from friends and family and other angels. And sometimes founders want to protect the financial interests of FFAs. If FFAs do not continue to invest and the company hits bumps (again – this is the norm), then the company ends up with unhappy FFAs and the founders feel responsible (understandably so).