No matter what funding round an investor decides to invest in, subsequent funding rounds can impact an investment. Each funding round a startup goes through after an investment is made has the potential to reduce the ownership stake, slowly chipping … Continue reading
Equity Dilution
Often, companies will undergo multiple funding rounds to bring in capital. If you invested in their Series A round, you may wonder what will happen to your investment as the company brings in a Series B or Series C round. … Continue reading
The reason why an increased valuation doesn’t necessarily lead to an increased price per share? Equity dilution. Continue reading
In the midst of growing a company and all that entails, issues like equity dilution may seem too far off to worry about for many startup executives, something to worry about later. But when mishandled, the effects of equity dilution … Continue reading
