The Silliness Of Recapping Seed Rounds
Feld Thoughts
JULY 14, 2015
The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. So the new investment gets 60%, the founders get 39.9%, and the $1m of seed money gets 0.1%. and the investors, who put up $1m in a convertible note, get 0.1%. Sure – it happens.
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