So, Mr. A & Ms. B start a company, StartUp from garage
Step 1
You get registered with govt. issuing 100,000 shares. A & B each own 50%, i.e. 50,000 shares. The value of the startup is 0
Step 2
Seed Round
They approach a friend, F seeking $100,000 to…
You and your friend, F start a company, Startup Inc.
Each of you own 50% of Startup Inc. today.
After one year, F decides to leave. He sells his 50% to a third- party (T) and walks away.
T doesn’t work with you on a daily basis. He plans to…
