The words · · 1 min read

Dilution, counted honestly

Count the option pool, the SAFEs and the next round together.

Founders tend to count dilution one round at a time. Investors count it across all of them.

Before you sign, write down what you will own after this round, the pool top-up and the next round. If that number scares you, the terms are the problem, not the next round.

E. Brandt

Weiter.

  1. The words
  2. The numbers
  3. Your deck
  4. The pitch

Go deeper · The numbers

Cap table: three rounds, simulated

Change one assumption and watch the founders’ share move.

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Keep reading · The words

The cap table after three rounds

· 1 min read

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