|
In a prior post, “Pre-Money and Post-Money Valuation,” we introduced the basics of pre-money valuation and post-money valuation and how they are related. This post expands that post to discuss the impact of option pool refreshes on pre- and post-$ valuations. In the prior post, we looked at FlintRubble.com which was formed by Wilma and Betty. The two founders invested $5,000 each and received 50,000 shares. After the issuance, the ownership looks like this:
0 Comments
Anti-dilution provisions protect existing stockholders from value dilution and/or ownership dilution. They are powerful investor protections and they come in different flavors.
In a prior post, we discussed Rights of First Offer (also known as Pre-Emptive Rights) which offer protection against ownership dilution. This post will explore anti-dilution protections that protect against value dilution. |
About this Blog
This Blog is a collection of thoughts on a variety of topics of interest to me, including: 
Categories
All
Archives
January 2024
Copyright Notice:
All original works on this site are © Allen J. Latta. All rights reserved. Neither this website nor any portion thereof may be reproduced or used in any manner whatsoever without the express prior written permission of Allen J. Latta. LP Corner® is a registered trademark of Campton Private Equity Advisors. Used with permission. DISCLAIMER: Readers of this Blog are not to construe it as investment, legal, accounting or tax advice, and it is not intended to provide the basis for the evaluation of any investment. Readers should consult with their own investment, legal, accounting, tax and other advisors to the determine the benefits and risks of any investment.
Private equity investments involve significant risks, including the loss of the entire investment. This Blog does not constitute an offer to sell or the solicitation of an offer to buy any security. |