Remove Finance Remove Preemptive Right Remove Startup Remove Valuation

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 short, they own a smaller piece of a larger valuation pie. Startups often get stuck, restart, pivot/change/move, etc., causing valuation bumps. And as stated above, I think they should use these rights.