Remove Dilution Remove Finance Remove Marketing Remove Preemptive Right

Small Investors


The treatment of the friends, family and angels (FFA) as the startup matures and raises larger rounds of financing over time is interesting. 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. And as stated above, I think they should use these rights.