In a down round scenario with an anti-dilution provision and no minimum price,
A) the new investor suffers all the losses and receives a smaller percentage ownership than she would in an up round
B) early investors suffer all the losses and their percentage ownerships would be smaller than in an up round
C) entrepreneurs suffer all the losses and their percentage ownerships would be smaller than in an up round
D) A and B
E) A, B, and C

Question

Quizplus · Accepted Answer

In a down round with anti-dilution provisions, the entrepreneurs typically suffer the most as their ownership percentage is diluted to protect early investors.

In a Down Round Scenario with an Anti-Dilution Provision and No