Investors may also be affected by this risk
Apr 30, 2024 5:35:16 GMT
Post by rubisultan23 on Apr 30, 2024 5:35:16 GMT
This is to demonstrate that you understand all business risks and that you have plans with sufficient industry expertise and common sense to deal with any difficulties that may arise. Valuation of projects in the after-sales phase for product launches and recurring sales or for projects that have exceeded profitability thresholds is obtained through other, more sophisticated methods, which are based on the ability to generate cash flow to obtain comparable multiples, etc.
This is because the main Holding and Investment Offices Email List risk has passed. Anti-Dilution Provisions It’s worth noting that the dangers of dilution don’t just affect promotional teams. This occurs when a project's valuation suffers a significant downward change due to the current economic environment or is unable to generate significant growth in value due to previous valuations being too high. In these cases whether the investor participates in subsequent rounds issued at lower prices or if he is unable to maintain his proportion of investment he will pay a higher price than the current value of the company which will result in risk originally anticipated.
The way investors protect themselves against this risk is to introduce specific clauses in contracts that cover the assumption of lower value in future funding rounds. This is where anti-dilution provisions come into play. Generally speaking, the higher the investor's pre-funding valuation, the greater the risk, so the more necessary it is for him to incorporate these protection mechanisms that are beneficial to him.
This is because the main Holding and Investment Offices Email List risk has passed. Anti-Dilution Provisions It’s worth noting that the dangers of dilution don’t just affect promotional teams. This occurs when a project's valuation suffers a significant downward change due to the current economic environment or is unable to generate significant growth in value due to previous valuations being too high. In these cases whether the investor participates in subsequent rounds issued at lower prices or if he is unable to maintain his proportion of investment he will pay a higher price than the current value of the company which will result in risk originally anticipated.
The way investors protect themselves against this risk is to introduce specific clauses in contracts that cover the assumption of lower value in future funding rounds. This is where anti-dilution provisions come into play. Generally speaking, the higher the investor's pre-funding valuation, the greater the risk, so the more necessary it is for him to incorporate these protection mechanisms that are beneficial to him.