Comment by jagged-chisel
3 days ago
Yeah, that’s not how my company operates. I’m maintaining my majority share by splitting only. The VCs can go along, or they can hope their next investment is the unicorn.
3 days ago
Yeah, that’s not how my company operates. I’m maintaining my majority share by splitting only. The VCs can go along, or they can hope their next investment is the unicorn.
Yeah, also seems very US-centric with "outstanding shares". Other countries don't allow you to have outstanding shares. Also, where is the "reinvest" option during series rounds. Like, what founder also doesn't reinvest to keep their equity during fund raising?
This is US centric, it's mentioned on the first page, along with the notes and links.
Reinvesting is a minority, edge case. I can't think of a single VC company in the Bay area that can have founders reinvest shares and not cause issues raising.
"...reinvest shares." I don't understand this. I'm guessing it's my lack of knowledge.
I'd expect "reinvest" to mean "supply more capital to obtain more shares" in an attempt to maintain ownership percentage. The founder would have to already be rather wealthy, or be savvy enough to negotiate some other way to maintain their ownership.