Understanding Equity Dilution and Its Implications for Founders

Equity dilution is a fundamental in the world of startups and venture capital. It refers to the reduction in the ownership percentage of existing shareholders when new shares are issued. For startup founders, understanding equity dilution and its implications is crucial for making informed decisions about financing and long-term strategy. 

This article considers what equity dilution is, why it happens, how it affects founders, and strategies to manage its impact.

Equity Dilution