Many exits happen at much lower than expected values. Even a three or four fold increase in company valuation may not produce positive returns for the early risk-taking investors. Angel investors and first-round investors are taking it on the chin all too often. Here’s how to stop it.
Posts Tagged ‘dilution’
What’s my baby worth? Figuring that out is the biggest challenge entrepreneurs face when attracting investors. Many negotiations break down over this issue. The good news is that there are contractual mechanisms that can be used to resolve any disparities.