I negotiated a deal with a startup when they wanted me to move overseas to work with them and I effectively received 2% ownership of the company plus a nice salary.
The company is getting ready to take the first round of investment and I'm a little confused by some of the verbage and guidance that the finance consultant is giving and was hoping that someone would clarify.
I dabble in day-trading so I'm a little familiar with stock which is basically what I have: 2% worth of stock in the company.
The consultant is suggesting that when the first round of investment takes place, everyone will give up part of their ownership in the company, but what we retain will just be worth more.
Is it accurate to say that I "have" to give up any of my stock for the company to take a round of investment?
I get that the stock is worth more, which is why I would prefer not to "sell" it.
What is traditional/typical in these situations?