To me though, as long as the percentage of the business that the
shares represent is the same, the number of shares is immaterial. Are
there any implications that I am missing?
Thank you in advance ...
As many as necessary to accommodate investors in all foreseeable
rounds of financing. Note, however, that you are not making a
distinction between authorized shared and issued shares, and you
should...
> To me though, as long as the percentage of the business that the
> shares represent is the same, the number of shares is immaterial.
> Are there any implications that I am missing?
Yes; the future IPO. NASDAQ regulations prohibit offering shares in
an IPO for less than $5 per share; at the same time, offering shares
at above $100 per share is often thought to be impractical (shares are
traded in blocks of 100, so offering shares at above $100 per share is
thought to alienate small investors who cannot afford to open $10,000
positions). Since most IPOs comfortably fall within $5-100 million
range, million shares appears to be a very good number.
Cheers,
NC