Dilution occurs when a company issues new shares, reducing existing ownership percentages. This article explains the mechanics, the trade-offs with valuation, and the impact on founder control.
This article provides practical guidance for founders on designing equity refresh plans to keep early employees motivated and aligned with company goals as their initial stock grants vest.
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.
A Cap Table tracks who owns your company. This article defines the term, breaks down its components, and explains the critical role it plays during fundraising and exits.