Remove Dilution Remove Down Round Remove Founder Remove Preemptive Right

Small Investors

ithacaVC

Founders often raise money from friends and family and other angels. The treatment of the friends, family and angels (FFA) as the startup matures and raises larger rounds of financing over time is interesting. And sometimes founders want to protect the financial interests of FFAs. In this situation, the FFAs are diluted from an ownership percentage, but enhanced economically. And as stated above, I think they should use these rights.