Equity Dilution

Advanced πŸš€ Startup / VC

Definition

The process by which your ownership percentage shrinks with each funding round until you own approximately as much of your company as you own of the Pacific Ocean. It's like splitting a pizza with more and more people, except you baked the pizza and now you get one olive.

Example Usage

"After five funding rounds, my equity has been diluted from 50% to 3%, which means I went from owning half the company to owning the idea that the company should exist."

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