A) Do they get 10K shares? 10K out of 110K shares only equates to 9.1% of the company.
B)Or do they get 11,100 shares? Which works out closer to 10%?
And if it's B, is there an equation to figure out the exact number of shares they should receive?
One example I can think of is Grab in Southeast Asia taking Uber's business model, implementing it in Southeast Asia before Uber established itself there, and winning that market.
According to this Quora thread, the German VC firm Rocket Internet uses this process along with the global ePlanet Capital and numerous Latin American families.
Do you know any other examples of this process? What do you think about it?
Although it might sound shady, the end result is people often in developing countries having access to goods and services at fair prices that they would not otherwise be able to obtain.