Burn Out

April 28, 2015 by FundingSage -

AKA. Cram Down – Extraordinary dilution, by reason of a round of financing, of a non-participating investor’s percentage ownership in the issuer.³

Related Terms

Dilution Protection | Post-Money Cap Table | Pre-Money Cap Table

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FundingSage

Definitioner

HR

Human Relations

Dilution

Issuing more shares of a company dilutes the value of holdings of existing shareholders.² A reduction in the percentage ownership of a given shareholder in a company caused by the issuance of new shares.³

Issuer

A company raising funds through a "Portal" or "Broker-Dealer" via securities-based crowdfunding, and issuing a security (equity or debt) to each investor in return for his or her funds.¹
Refers to the organization issuing or proposing to issue a security.³

Cram Down

AKA. Burn Out - Extraordinary dilution, by reason of a round of financing, of a non-participating investor’s percentage ownership in the issuer.³ Related Terms

Collar Agreement | Closed-end Fund | Non-Dilutive Shares

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Dilution: the real meaning of Funding Success

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