

How Equity Dilution Works - Maro
http://www.gaebler.com/How-Equity-Dilution-Works.htm

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ojbyrne
This seems like a pretty-long winded explanation of a relatively simple
concept, and doesn't even mention option pools, a nearly ubiquitous feature of
most funding rounds.

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martinkallstrom
Maybe the calculations should also take into account that the chances of the
equity becoming worth anything at all is probably higher in a company that is
able to bring in one or two rounds of financing. And that the exit value
hopefully is higher. All the owners are in most cases diluted equally,
including the ones making the decision. The total worth of your shares should
be higher even counting the dilution, or you are working at the wrong company
to begin with.

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jules
Who has the power to decide over dilution? Can you decide that you don't want
your part diluted, and the rest can't do anything about that?

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martinkallstrom
No, it is probably a majority vote among the share holders. Minority share
holders have no say in the decision.

