dilution

  • Understanding How Dilution Affects You At A Startup

    Understanding How Dilution Affects You At A Startup

    Everybody knows that when you raise money at a startup your ownership percentage of the company goes down. The goal is to have the value of the startup go up by enough that you own a smaller percentage of a much larger business and therefore your total personal value goes up. The simplest way to think about this is: If you own 20% of a $2 million company your stake is worth $400,000. If you… Read More