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Well, partly it's an audience thing. Hacker News has a lot of folks who work at tech startups, and if you work at a tech startup, dilution is nearly always a ve
by CobrastanJorji 6mo ago
Well, partly it's an audience thing. Hacker News has a lot of folks who work at tech startups, and if you work at a tech startup, dilution is nearly always a very bad word for you.
- rahimnathwani 6mo agoIf you work at a tech startup then you probably hope your company raises an additional round of funding, i.e. you hope you get diluted.
- LtdJorge 6mo agoIsn’t that done with already existing shares (from the founders)? Then it wouldn’t be dilution.
- rahimnathwani 6mo agoNo. The main purpose of a funding round is for the company to sell shares and receive cash (e.g. to spend on marketing), not for founders to sell shares and receive cash (e.g. to spend on Ferraris). (Sometimes, at the same time as a funding round, founders may also sell some existing shares to the new investors.)