Here's a simple case. Company is worth $1MM. You own 10% of the company. Company gets a $1MM cash investment. You get diluted to 5%. But the company is now in

Here's a simple case. Company is worth $1MM. You own 10% of the company. Company gets a $1MM cash investment. You get diluted to 5%. But the company is now instantly worth $2MM. 10% of $1MM = 5% of $2MM This is not bullshit, it's math.