Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza
Gust
APRIL 11, 2014
Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. Suppose it raises $2 million at a $6 million pre-money valuation. Expert commentators including David S.
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