Everybody knows that when you raise money at a startup your ownership percentage of the company goes down. The goal is to have the value of the startup go up by enough that you own a smaller percentage of a much larger business and therefore your total personal value goes up. The simplest way to ...
A good explanation of how down rounds effect ownership for different kinds of antidilution provisions in term sheets: full ratchet, broad-based weighted-average, and narrow-based weighted-average.
