Resolved: The second funding of the 3 million euros from the VC diluted the initail investment or not?
My question is that if the VC fund takes part of the share of the company for every investment they make.
I'll appreciate the help, thanks!!
1 answers ( 1 marked as helpful)
Hey Carlos,
They almost always take an equity position. Perhaps the only exception is when they finance firms with a convertible note - a debt instrument (companiesa are required to repay capital + interest expenses) that can be converted into equity if VCs wanted to.
Please let me know if you have any additional questions.
Best,
Ned
