Dilution
/daɪˈluː.ʃən/concept · noun
The reduction in your ownership percentage when a company issues new shares — at each funding round, every existing shareholder's slice of the pie gets smaller, even as the pie itself grows.
Real-world examples
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Add my companyDay 1: founder owns 100%. After seed (20% to investors + 15% option pool): ~65%. After Series A (20% + pool top-up): ~50%. After B: ~38%. After C: ~28%. By IPO, most founders own 5-15% of their own company. This isn't catastrophic — it's the cost of capital.
