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How much dilution is "normal"?
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How much dilution is "normal"?

When are you getting overly diluted?

CJ Gustafson's avatar
CJ Gustafson
Jan 17, 2023
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How much dilution is "normal"?
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Diluting the cap table
Walter, diluting the cap table

Dilution is one of the most misunderstood concepts in startup land. But many employees are afraid to ask for a simple explanation.

Here’s how it works:

What’s Dilution?

Dilution occurs whenever new (more) shares are issued (created). Let's go through some common scenarios:

1/ When the Firm Completes a Fund Raise: This is the m…

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