Good question. The new investor (ie buyer) has a minimum ticket size they want to put in considering they are institutional. The founders also have a cap of 10% of their shares that they can sell. If most angels choose to sell partial rather than full, the total amount of shares available for sale may not end up meeting the new buyer’s minimum ticket size, and that may scuttle the deal for everybody if the buyers decides to walk away. But if most angels sell ALL their stake, then that threshold is met. Make sense?
Good question. The new investor (ie buyer) has a minimum ticket size they want to put in considering they are institutional. The founders also have a cap of 10% of their shares that they can sell. If most angels choose to sell partial rather than full, the total amount of shares available for sale may not end up meeting the new buyer’s minimum ticket size, and that may scuttle the deal for everybody if the buyers decides to walk away. But if most angels sell ALL their stake, then that threshold is met. Make sense?