Price Ownership
Startup Dilution Explained
A worked hypothetical with no market assumptions hidden.
Short answer
How is startup dilution calculated across a financing round? Capital Bearings treats this as an education and preparation question. The route may involve legal, tax, lender, portal, or agency decisions that require the relevant professional or official process.
Use this guide to identify the trade-off, then compare it with the startup funding options comparison and the source named below. It does not select a route for a particular company.
A worked ownership scenario
Assume a company has 8,000,000 fully diluted shares before a financing. If it issues 2,000,000 new shares, the pre-financing holders own 80 percent afterward: 8,000,000 divided by 10,000,000. The arithmetic is hypothetical. It does not price a company or predict a term.
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