FEBRUARY 1, 2018
It is highly typical for a startup to have small investors on its cap table. 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). And as stated above, I think they should use these rights. Founders often raise money from friends and family and other angels. That is all well and good… and 100% normal.