When investors come onboard, they ask for anti dilution rights to protect themselves from any down trend in valuation of the startup in future. Startup should issue additional shares for free to existing investors whenever this gets triggered.
The current episode of eLagaan Whiteboard Friday talks about what anti dilution rights are and how you can bring few dimensions to make it a close ended option for investors & startup and still be fair.
For queries: hello@eLagaan.com
#startup #funding #eLagaan #nextbigwhat
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