4 ms·
This article[1] may help you to understand why you (rightly) have a justified fear of equity dilution as the company grows and (probably) raises additional capi
by otoburb 12y ago
This article[1] may help you to understand why you (rightly) have a justified fear of equity dilution as the company grows and (probably) raises additional capital through future funding rounds. The relevant quote: "When you are issued employee equity, be prepared for dilution. It is not a bad thing. It is a normal part of the value creation exercise that a startup is."
The article tries to explain how equity dilution (for both founders and employees) pans out. It is worth a read.
[1] http://avc.com/2010/10/employee-equity-dilution/ http://avc.com/2010/10/employee-equity-dilution/