Glossary · Ownership
Dilution
When you issue new shares, existing owners’ percent of the company usually shrinks — like slicing the same pizza into more pieces. It is normal when you raise money or hire with equity.
Related: Cap table · Option pool · Anti-dilution protection · Priced round
A bit more nuance▾
- Dilution can still be worth it if the company’s value grows faster than your slice shrinks.
- Anti-dilution clauses protect some investors in down rounds — read carefully.
Go deeper▾
Discussion questions▾
- Would you rather own 10% of a huge outcome or 40% of a small one?
- Where does dilution hurt employees most in your plan?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.