Share Dilution for Startups: Balancing Funding and Ownership
Too Long; Didn't Read
The more money the founders raise, the more their ownership stake dilutes. Founders should aim for a dilution of 15-20% per funding round and strive to retain 50-60% ownership in the company by the time they close a Series A round. One of the biggest mistakes that can harm an early-stage startup is believing that a larger initial investment is always better.