It’s no secret that the current entrepreneurial world is dominated by startup giants from the United States. So, if European startups want to catch up, as well as stop losing talent to US companies, they have to start offering company shares to employees.
During any investment, some of the integral parts of negotiations are provisions that protect investors from dilution in subsequent financing rounds.
It’s a counterintuitive fact when a company is small but believe it or not: equity is the most precious asset a startup has. If explained and used well, it can play a key role in motivating your employees to stay on the boat for the long run.
Investment rounds can get tricky to calculate when convertible rounds with cap and discount come into play. So let’s have a look at how that works.