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. Continue reading
Tag Archives: Shareholders Agreement
The Importance of a Shareholders Agreement
Reply
A company is owned by its shareholders who, in turn, appoint a board of directors and officers. The person (or persons) who have more than 50% of the voting shares determine who the directors and officers will be. These officers and directors will then run the company. A Shareholders Agreement is essential in giving minority shareholders certain rights and in defining how a company will be governed. Continue reading