The misunderstood parts of dilution and venture math

Do you REALLY understand dilution? A viral walkthrough…

I wrote this Twitter thread in reaction to the questions I’ve received from founders in response to the market shifts in fundraising. 

Jason Yeh @jayyeh

When @levie's company @Box IPO'd in 2014, he owned just 5.7% of the co Shocking? Nope. That's the reality of venture funding + dilution, a reality that will hit MUCH harder in today's mkt Ready to learn? Thread on the most misunderstood parts of dilution + venture math 🧵👇

It’s clear that founders today are VERY unsophisticated when it comes to dilution planning because… well, it hasn’t made a difference especially these past 2 years when valuations have been sky-high and rising constantly.

As they say, there’s no such thing as a free lunch… and well, it’s time to pay up.

I converted the thread to a lovely essay so click through to read the whole thing and catch these lovely gems:

• Background on dilution ⚗️🧪

• Illustrated walkthrough of venture math 🧮➗

• Insights into my free dilution planning tool 🛠🪚

The big bonus? Aaron Levie responded to my Twitter thread which I incorporated into the essay :) (still amazed that this website is free..)

Enjoy! (Click to continue reading...)

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