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I am really curious about this topic, and I am researching as much as I can. I want to start a tech startup, and I am just getting familiar with how the startup and vc world actually works. I came to articles and blog posts about founders taking money off table when fundraising, or pre-ipo or when there is huge round of investment from VC's.

What is your opinion of this? Is this good thing to do? I am not asking for a very early or young startup, but successful one.

Should founders ask the board or future investors for this? Without alarming them or sending red flags.

Startups

Fundraising

Stock Market

Answer

Dr. Shishir Gupta answered

Generally additional shares are issued to the investors instead of transferring the equity of founders.

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