THE MECHANISM OF PROTECTION AGAINST WASHING THE PART OF CAPITAL OF STARTUPS AS A RESULT OF SEVERAL ROUNDS OF VENTURE FINANCING ; МЕХАНІЗМ ЗАХИСТУ ВІД РОЗМИВАННЯ ЧАСТКИ КАПІТАЛУ СТАРТАПІВ В РЕЗУЛЬТАТІ ДЕКІЛЬКОХ РАУНДІВ ВЕНЧУРНОГО ФІНАНСУВАННЯ

UDC 338.2 JEL Classification: L10 Nepran A., Girzheva O., Osmirko I. THE MECHANISM OF PROTECTION AGAINST WASHING THE PART OF CAPITAL OF STARTUPS AS A RESULT OF SEVERAL ROUNDS OF VENTURE FINANCING The goal is to apply protection mechanisms against dilution of the investor's share of capital in subsequent rounds of financing startup projects. Research methodology. To achieve the goal, the following general scientific and special research methods and techniques were used in the research: methods of generalization and abstraction ― to determine tools for the protection of financing of startup projects. The results. At the early stage of the development of innovative startups, it is difficult to predict the risks associated with investing, which leads to significant deviations in the amount of investment and income. Attracting funds from investors leads to a change in the fortunes of the founders and original investors. Startup funding can redistribute startup ownership. Among the measures aimed at countering the dilution of the original investor's share is the provision of the investment agreement on the distribution of control over the attraction of additional capital. One of the simplest measures to combat the dilution of the investor's share is to ensure the appropriate structural proportions in the capital of the startup project. In addition to this measure, the investor can apply a number of measures to prevent dilution of his share in the capital of the startup project. A feature of dilution of an investor's share in a joint-stock company is the issue of preferred shares and bonds converted into ordinary shares. The main countermeasure against the change of share is the definition of conversion, which would not change the proportions in the distribution of shares between investors. Practical significance. The introduction of mechanisms to combat dilution of the investor's shares will contribute to the strengthening of corporate control over the startup's activities in the process of further financing. ; УДК ...