Small Investors

ithacaVC

Founders often raise money from friends and family and other angels. And sometimes founders want to protect the financial interests of FFAs. If FFAs do not continue to invest and the company hits bumps (again – this is the norm), then the company ends up with unhappy FFAs and the founders feel responsible (understandably so). And as stated above, I think they should use these rights. It is highly typical for a startup to have small investors on its cap table.