Two concepts that venture capital and/or growth equity investors often grapple with are “valuation”, the agreed-to dollar value of the target company, and “dilution,” the nexus between an investor’s ...

Dilution occurs when a company issues additional shares, reducing the ownership percentage of existing shareholders. As more shares are introduced into the market, each share's claim on the company's ...

Founders frequently underestimate the equity dilution impacts of funding rounds and employee stock option plans (ESOPs). Consider two stark examples: Eric Yuan's ownership in Zoom dwindled to 22% by ...

Stock based compensation or SBC for short has been a focus of many lately given the egregious numbers posted quarter-after-quarter in financial results. The point of all this investor anxiety towards ...

Dilution, also called shareholder dilution or sometimes equity dilution, is the phenomenon that causes owners of a company's equity shares (stock) to lose a proportionate percentage of ownership value ...