Dilution

An option pool is equity reserved for future employees. It is a critical tool for hiring talent but requires careful planning to manage founder dilution effectively.

Super pro rata rights allow investors to increase ownership in future rounds. This guide explains the mechanics, the difference from standard rights, and the potential risks for future funding.

A straightforward guide to the Post-Money SAFE, explaining how it calculates ownership, impacts dilution, and simplifies cap table math for founders and investors.

Equity represents ownership in a company. This article defines the term, explores its role as a currency for hiring and fundraising, and explains the risks of dilution.

A priced round is where a startup sets a specific valuation. Investors buy shares at a fixed price, establishing clear ownership percentages and formalizing the company structure.

Warrants are rights to buy stock at a specific price used to sweeten deals. This guide explains their mechanics, difference from options, and role in fundraising.