Login

Post on Medial

Anonymous

Anonymous

Stealth • 3m

✨ ENTREPRENEURS IQ TEST ✨ In the context of venture capital, which term describes a contractual clause that allows investors to protect their investment by requiring the startup to grant them the option to purchase additional shares at a discounted rate if new funding rounds are conducted at a lower valuation than their initial investment ?

1 replies5 likes
1
Replies (1)
Anonymous

Anonymous

Stealth • 3m

What is — Anti-Dilution Provision An anti-dilution provision is a contractual clause that protects investors from losing their ownership percentage if new shares are issued at a lower price than their initial investment. This provision ensures that investors can purchase additional shares at the lower price to maintain their ownership stake. Example: Imagine you invested in a startup and bought 1,000 shares at $100 per share, totaling an investment of $100,000. Now, the company is raising funds again and issues 1,000 shares at $80 per share.With an anti-dilution provision, your investment is protected. This means you would have the right to purchase additional shares at the $80 price to maintain your ownership percentage and ensure your investment value doesn’t decrease. This helps investors avoid having their stake diluted when new shares are issued at a lower price.

0 replies1 like

More like this

Recommendations from Medial

Saksham

 • 

Bebyond • 3m

Demystifying the Ownership Structure Clause in Shareholder Agreements (SHA)📍 The Ownership Structure clause in your SHA is crucial. Here's why: 1. Defines Equity Distribution: It outlines who owns what percentage of the company. This impacts deci

See More
0 replies12 likes
1
Image Description
Image Description

Shuvodip Ray

 • 

YouTube • 4m

🗞️ How did Uber's initial funding rounds impact its growth Uber's initial funding rounds were crucial in fueling the company's rapid growth and expansion. Uber raised an initial $1.25 million in angel funding from First Round Capital in 2010, which

See More
3 replies11 likes
2
Image Description
Image Description

DK

 • 

Ride • 4m

I'm kinda sus about Bhavish Agarwal's latest headlines. It is not easy to create your own cloud provider, it's a collosal undertaking requiring millions of dollars of investment and hiring large number of SRE and SWE who have years of experience at s

See More
7 replies13 likes

Vedant SD

Stealth • 4m

Day 46: BLR VC Lingo Demystified: Decoding Investment Speak Venture capitalists (VCs) are the fuel of Bengaluru's startups. But their lingo can be confusing! Here's your decoder ring: * Seed Money: The initial funding to plant the seed of your

See More
0 replies4 likes
1
Image Description

SHIV DIXIT

Stealth • 4d

📖 DAILY BOOK SUMMARIES 📖 🔗 DIRECT FREE E-BOOK DOWNLOAD LINK AVAILABLE — https://drive.google.com/file/d/1ANXikzqaydxTSdRtvFKNTfFZmCbNKL4O/view?usp=drivesdk 🔥 High Output Management 🔥 🚀 20 Lessons 👉 ✨ By Andrew S. Grove ✨ 1. High Outpu

See More
1 replies22 likes
16
Image Description
Image Description

SHIV DIXIT

Stealth • 25d

📖 DAILY BOOK SUMMARIES 📖 🔗 DIRECT FREE E-BOOK DOWNLOAD LINK AVAILABLE — https://drive.google.com/file/d/1i50x1Zx4uVjKiArsV39GRDvhyrPzbGM3/view?usp=drivesdk 🔥 Corporate Finance 🔥 🚀 27 Lessons by 👉 ✨ Jonathan Berk and Peter DeMarzo ✨

See More
2 replies18 likes
13
Image Description
Image Description

Ambuj Singh

Stealth • 8d

🚀 Top EdTech Deals of 2024! 📚💼 The EdTech sector continues to attract massive investments, signaling the industry's resilience and growth potential. Here are some of the biggest funding highlights for 2024 💰 $210M - PhysicsWallah 💰 $150M - Eru

See More
6 replies6 likes
Anonymous
Image Description

Anonymous

Stealth • 3m

✨ Ceo IQ Test ✨ Co-Founder Conflict with Potentially Catastrophic Impact — You and your co-founder started a tech company that has quickly gained traction in the market. However, as your company begins to scale, significant differences in vision, s

See More
2 replies5 likes
Anonymous

Anonymous

Stealth • 1m

🔥 PM Modi Launched Intership Program From 1 Crores Indian Youth 🔥 🇮🇳 The Indian government has launched the Prime Minister’s Internship Scheme, which aims to provide 1.25 lakh internships during the fiscal year 2024-25. 🪷 This initiative is p

See More
0 replies3 likes
1

SHIV DIXIT

Stealth • 11d

📖 DAILY BOOK SUMMARIES 📖 🔗 DIRECT FREE E-BOOK DOWNLOAD LINK AVAILABLE — https://drive.google.com/file/d/1dOrTmnu2zzvH95g6XgHxP92h9RGdVP7s/view?usp=drivesdk 🔥Hooked:Build Habit-Forming Products🔥 🚀 20 Lessons 👉 ✨ Nir Eyal ✨ 1. Habit-For

See More
0 replies15 likes
7

Download the medial app to read full posts, comements and news.