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by chrisgoman 3315 days ago
+1. Most folks here don't understand that 5% equity is easily diluted to 0.005% equity in 6 months. So now you are going to spend $50k suing the company for the $10k they owe you. OP needs to listen to people who have experience (like you) instead of random strangers who think equity = cash
1 comments

You don't dilute 5% to .005% in 6 months without moves that at best are questionable and at worst are illegal, especially if your shares are diluted and some others are not.
> especially if your shares are diluted and some others are not

How does that work in practice?

By having several different classes of shares, some of them with anti-dilution provisions and some without.