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Continually raising money means the current stockholders, including people recently hired,are being diluted and are seeing their percentage shrink. This won't
by mchahn 11y ago
Continually raising money means the current stockholders, including people recently hired,are being diluted and are seeing their percentage shrink. This won't matter in the short term as the valuation soars, but it definitely will matter when the company matures and the end value is worth less.
- harryh 11y agoThat's only true if the money is spent unprofitably.
- vram22 11y ago> the end value is worth less. Just realized: the meaning changes a lot if you remove the space between worth and less :)
- encoderer 11y agoWell, the idea is that employees will own a little less of a company that now has $150MM more on it's balance sheet.