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> Don't be diluted in thinking the founders will "take care of everyone". The normal phrase is "...deluded in thinking...", but in this case, "diluted" is prob
by ansible 12y ago
> Don't be diluted in thinking the founders will "take care of everyone".
The normal phrase is "...deluded in thinking...", but in this case, "diluted" is probably appropriate.
I am amused.
Staying on topic...
If you've got any significant stake in the company, you do have an interest in any deals being made. Sometimes it is the case that the current shares will be diluted so that the new investment can be accepted. It depends on how much was reserved at the start.
So you may have been holding stock that was worth 5% of the company, but after the investment it could now be less. It really depends on how the deal was structured (how much for how much basically).
You may not (as a non-founder) have a say in the terms of the deal, but you need to be kept informed.
I've seen cases where the founders will dilute themselves, but not the smaller holders, to try to be fair to them, but that doesn't always happen.
Maybe its time to read up on your corporations by-laws, which may spell out how and when they have to notify you of these sorts of changes.