Tech Transfer eNews Blog

Understanding Equity Dilution and Its Effects on University Start-ups


By Jesse Schwartz
Published: October 28th, 2020

Most university-based start-ups face the reality of needing to raise capital to escape the Valley of Death and grow the business – and offering equity shares for cash is a common move. But is it the right move, and can it be handled in a way that minimizes the dilution of equity among founders and earlier investors – including the university itself?

Understanding equity dilution is critically important for the tech transfer and university space, and for any entrepreneur who has who plans on raising growth capital. But making the wrong moves at the wrong time can have devastating and unexpected impact on not only the value of each party’s equity stake but on the prospects for future fundraising rounds, on valuation, and on the ultimate issue: whether the business succeeds or fails. That’s why Tech Transfer Central has tapped a leading attorney expert for this important webinar: Understanding Equity Dilution and Its Effects on University Start-ups, scheduled for December 3rd.

We’ve teamed up with attorney Tyson Benson to provide you with clear guidance on the critical understanding needed to draft equity share dilution provisions that walk the fine line between leaving your founders or your university out in the cold and attracting needed funds, while ensuring immediate funding needs aren’t sacrificing critical valuation and future fundraising rounds.

For more details or to register, click here.

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Posted under: Distance Learning, Tech Transfer e-News

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