North Las Vegas Startup Attorneys & Lawyers

Key Takeaways:

• What RSUs Are: RSUs are company shares granted as part of compensation, requiring vesting periods or performance goals to claim ownership.
• Public vs. Private RSUs: Public RSUs can be sold on stock markets once vested, while private RSUs may face liquidity and valuation challenges.
• Tax Implications: Vested RSUs are taxed as income based on their value, requiring careful planning for both income and capital gains taxes.
• Planning Ahead: Save for taxes, diversify investments, and treat unvested RSUs as potential upside rather than guaranteed compensation.
• Career Impact: RSUs encourage employee retention through vesting schedules, but leaving a job typically forfeits unvested shares.
• Private Company Challenges: Limited selling options and uncertain valuations make RSUs from priv

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Key Takeaways

• Anti dilution rights protect early investors from ownership and value dilution if new shares are issued at a lower price.
• There are two main types: weighted-average and full ratchet provisions.
• Anti dilution protection enhances investor confidence and can improve a startup’s fundraising ability.
• Founders should understand how these provisions impact ownership, voting rights, and future fundraising flexibility.
• Not all anti dilution protections are favorable to common shareholders, especially full ratchet clauses.

Anti-Dilution provision is a clause that gives an investor the right to maintain the same percentage ownership of a company by purchasing a proportional amount of shares in the future when securities are issued.

Dilution: What Is It?

To understand what “anti-dilution” is, you must fi

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