Inflation and Deflation in Web2 and Web3 Startups
Tom Tunguz
MARCH 27, 2022
Before a startup is founded, no stock exists. The startup can inflate share count by creating shares. By the time it’s public, more than 100m shares exist across hundreds of shareholders (employees, institutional investors, retail investors). Conversely, the company can deflate share count by buying shares and destroying them.
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