You can't escape dilution by investing in a company. New investment dilutes both the common and the preferred. This is why investors ask for pro-rata rights, an

You can't escape dilution by investing in a company. New investment dilutes both the common and the preferred. This is why investors ask for pro-rata rights, and have to put in their pro-rata in each new round, just to maintain their percentage ownership. Generally speaking, if you try to invest in your own company you'll either blow a bunch of money on lawyering or you'll screw it up, resulting in a bigger bill down the road. Either way you'll be less far along than if you just used the money to put off taking investment, making progress and increasing your premoney valuation in whatever future round you do.