> Four others that raised money but with painful recapitalizations that effectively wiped out early shareholders. That last bullet was the nail in the coffin for me. For new investors to come in and wipe out early investors just because the market was in their favor was painful. It felt like opportunistic resets that enriched later investors at the expense of early supporters (not to mention early employees).

what? how does this happen exactly? i'm not aware of the normal mechanisms. are there not minority shareholder protections?