
All About Term Sheets: Down Rounds
Closing Time Podcast
Strategies for Protecting Investors and Employees in Down-Round Financings
This chapter explores strategies to safeguard angel investors in down-round financings, covering pro-rata rights, penalties for non-participation, and the implications for employees. Founders are advised on how to mitigate employee impact and navigate down-round scenarios, with a teaser for an upcoming episode on securing 'clean terms' in funding agreements.
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