Founders raising their first outside dollars often sign financing documents quickly to keep momentum. But small choices can have big consequences. The agreement type—and how its terms interact with later-round agreements—can shrink founders’ ownership stake more than expected and give investors rights that limit founders’ options later.
Founders raising their first outside dollars often sign financing documents quickly to keep momentum. But small choices can have big consequences. The agreement type—and how its terms interact with later-round agreements—can shrink founders’ ownership stake more than expected and give investors rights that limit founders’ options later.
