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Old 11-29-2007, 08:02 PM
Quercus Quercus is offline
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Join Date: Aug 2004
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Default Re: How does equity work in a new company?

It gets sort of complicated, because typically these deals typically involve different classes of stock for the pre-money and post-money cases.

In the case you describe, if there is less money after 6 months than everyone put in, then typically the initial shares pre-money would get nothing and the post-money round 1 investors would get back proportionally what they put in.
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