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Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

The version of “anti-dilution protection” that most benefits outside investors is commonly called a “full ratchet.” They would, presumably, always buy at that discounted price because they’d be acquiring additional shares at a below market value which would, effectively, water down your ownership relative to theirs.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Bottom Up Market Sizing » January 12, 2010. Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values. Startups and angels: Along the way to success. times at 5 years and 11.39 here of 7.65 [2].