Asian founders are moving to the U.S. as the region's funding slump drags on

Fortune reported that Asian founders are relocating to the U.S. amid a protracted regional venture funding slump. The driver is the gap in valuation levels and later-stage investor density: with the same product, a team based in the U.S. finds later-stage funds more easily.

For early backers, the consequence is not losing the company but losing rights. When a startup restructures to put a U.S. parent on top — the flip — small holders in the old entity can be converted on unfavourable terms, lose pro-rata rights, or fall off the cap table if the original documents are silent.