How Equity Dilution Really Works
Ken Gaebler has a great post (here) on how stock equity dilution really works. Ask the VC, (Foundry Group’s new-ish blog) get credit for sharing this one.
If you ever wondered how equity dilution really works, or if you own shares of a startup and want to see what they are really worth I recommend reading through this post as it contains the math and logic needed to add it all up. More importantly, understanding how dilution works will help you negotiate a much better deal when the time comes!
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