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Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza

Gust

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. If you read the “ Dilution ” section of an IPO prospectus , you’ll see that the opposite happens to investors in the new public shares.

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