GTM.

Glossary

Dilution

The reduction in your ownership share when new shares are issued.

Raising money means issuing shares, and existing holders own a smaller percentage afterwards. That is the trade, not a trick.

The percentage matters less than what the money buys. A smaller slice of a company that reached its next milestone is usually worth more than a larger slice of one that ran out of runway.

Related terms

  • Cap table — Who owns what, and what they paid for it.
  • Valuation — The price agreed for the company in a round, not a measure of its worth.

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