The Silliness Of Recapping Seed Rounds
Feld Thoughts
JULY 14, 2015
The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. The founders usually get wiped out completely, but existing management usually ends up with new options for between 10% and 20% of the company. So they recapitalize the company.
70 
Let's personalize your content