Here’s a quick article on How Equity Dilution Works- Stock Dilution in Startups. A recommended read for entrepreneurs and those looking to join startups as equity compensated employee.
How Equity Dilution Works – Stock Dilution in Startups – Understanding Dilution – Raising Money – Entrepreneurial Tips – Resources for Entrepreneurs – Gaebler Ventures – Chicago, Illinois
This is the simplest explanation I have ever read on dilution! It also answered a question that I had about a year ago about how to value your company. Ultimately your first outside investor does, by what they is willing to accept for their investment.
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