4 ms·
FYI: it would be crazy if each round diluted you by half. I've never heard of that happening.
by grinich 12y ago
FYI: it would be crazy if each round diluted you by half. I've never heard of that happening.
- tedunangst 12y agoWorst case. Also made the math easy.
- grinich 12y agoEasy but wildly incorrect due to the exponential factor. For example, if you assume a 15% dilution over 11 fundraising rounds, then it's 0.0167% which is +$1.5MM at a $9B valuation. at 20%: +730k at 25%: +$380k I picked 15% because it seemed a good middle ground. Seed rounds are often <15%, Series A/B is around 20-30%, and later rounds target <5-10%. Because Palantir did so many rounds, I would guess only a few were significantly (> 15%) dilutive.