Remove IPO Remove Marketing Remove Preemptive Right Remove Stock

Small Investors


If FFAs only invest at the beginning and do not make any follow on investments as the company raises more $$ then the only real way FFAs make money when the company is ultimately sold is if the company keeps raising future rounds at higher and higher valuations (and IPO exit may provide upside if the stock price increases over time after the IPO). Or the economy tanks or stock market tanks moving valuations down at inopportune times for the startup.