Every time we give away a share of our company we dilute our ownership stake.

As such, we consider Dilution to be the most expensive for in a startup! It’s also a source of constant anxiety for Founders because we’re always worried about giving up too much.

• Dilution Fundamentals. How does Dilution work over time?
• Dilution Ranges. How much do Founders tend to give up at each round?
• When is it too much? What can we do to temper dilution?

Dilution isn’t a bad thing if we’re getting good value for it – like raising a helpful round of capital or attracting a key employee. Very few startups avoid any dilution at all, so we at least need to understand what to expect through our journey.