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Dumb question: Why would YC get diluted so much more than DH? I've started to read up on venture financing and this doesn't match my mental model for any of the
by peripitea 9y ago
Dumb question: Why would YC get diluted so much more than DH? I've started to read up on venture financing and this doesn't match my mental model for any of the mechanisms I've learned about. (Like if anything I'd expect YC to have less dilution due to follow-on/pro rata investments, if they did any.)
- phamilton 9y agoI believe that when founders stock is fully vested, additional grants are an option to retain the founders beyond 4 years (or whatever the founders stock beating period is). 11 years as CEO likely led to additional grants. For a much bigger example, look at the additional grant Musk got this last week for Tesla.