Philip Mendes: Start-Up Companies And Anti-Dilution Rights

You are representing the founder of a start-up company, and your client brings in a potential investor. This potential investor wants to invest his money and not only does he want his money back, but he also wants to participate in the growth that the start-up company will achieve by using his money.

At the same time, the investor wants a series of preferential rights that confer on the investor rights in priority to your client’s rights.

Are you aware of what priority rights to an investor are customary, and which are not?

Continue reading here.