Does an Angel Investor Always Own Your Company?
Quick question: If an angel investor as 20% stake in your company, will they always own it? Or until they exit? Any advice would be great!
hollyster·Apr 25, 2021hollyster·Apr 25, 2021I'm assuming by "angel investor", you mean and individual. The % ownership over time will likely get diluted if you raise future funding rounds, unless they have pro-rata rights and exercise them. Pro rata rights allows the investor to buy more shares at the next round to keep their % ownership. Hope that helps!
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