Remove Dilution Remove Finance Remove Preemptive Right Remove Valuation
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Small Investors

ithacaVC

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. In short, they own a smaller piece of a larger valuation pie. causing valuation bumps.