Closing Time Podcast cover image

All About Term Sheets: Down Rounds

Closing Time Podcast

CHAPTER

Navigating Equity Dilution and Liability as a Founder

This chapter delves into the challenges faced by early believers in a company due to a recapitalization round impacting their preferred shares, emphasizing the need for negotiating a large option pool to re-align incentives. It also highlights the potential liability founders may face from former employees, underscoring the importance of conducting a thorough market check for protection.

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