07-04-2021, 03:56 PM
Share Dilution Among Founders
submitted by /u/ddak1998
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Hey guys bit of a technical question:
If founders have different equity in a company (ie among three founders let’s say a 50-30-20 split) does equity get diluted (assume a 10% dilution)
A) equally among the three (3.33% each) B) unequally among the three but all portions still get diluted (50 gives up 5, 30 gives up 3, 20 gives up 2) C) Equity is diluted first from the person with the most and then the others if necessary (50 gives up 10 to make it 40-30-20)
Or is it just a case by case thing?
Assume a Seed round for this
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