Seed round dilution refers to the reduction in founders ownership when investors receive new shares for capital. Understanding dilution helps founders plan equity across multiple funding rounds.
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Pro Tip
Minimise option pool top-ups before fundraising - pre-money pool refreshes dilute founders before the investment arrives.
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Did You Know?
Average seed rounds dilute founders by 15-25%. By Series B, founders typically retain 40-60% collectively.
References
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