3 ms·
It sounds like your startup was unfortunately an outlier with respect to the level of dilution experienced. 99% dilution over 6 rounds is far from 'usual reali
by smallgovt 8y ago
It sounds like your startup was unfortunately an outlier with respect to the level of dilution experienced. 99% dilution over 6 rounds is far from 'usual reality'. More common is 20% dilution per round.
- vkou 8y agoIt was also an outlier, in the sense that it had a valuable exit. You've only got one lifetime to pull the equity slot machine, hoping that the reels come up all sixes.
- eanzenberg 8y ago6 rounds of 20% dilution will get you to 74% total dilution from the initial grant.
- Zephyr314 8y agoWhich in this case nets you >$1M [0] vs the 80k quoted above. This also assumes no retention grants over 6 rounds. [0]: 0.02*0.8^6*$200,000,000 = $1,048,576