Remove Dilution Remove Finance Remove Preemptive Right Remove Startup

Small Investors


It is highly typical for a startup to have small investors on its cap table. 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. Startups often get stuck, restart, pivot/change/move, etc., And as stated above, I think they should use these rights.