Most startups raise funding from investors in exchange for company shares, and then use that money to pay salaries to their employees, market the product and all.
But what if we skipped the middle step? Instead of raising money and giving away share
and let's suppose your company valuation is 1 crore today and after one year due to market conditions we have to downround and valuation get halved means 50 lacs. means we literally worked for one year and lose 50 % of our wealth without gaining anything .
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