Understanding How Dilution Affects You At A Startup

Everybody knows that when you raise money at a startup your ownership percentage of the company goes down. The goal is to have the value of the startup go up by enough that you own a smaller percentage of a much larger business and therefore your total personal value goes up.

Mark Suster

Full Story: http://techcrunch.com/2011/10/13/understanding-how-dilution-affects-you-at-a-startup/