Founders and early employees often face the issue of equity dilution as the startup grows and more funding rounds occur. This can significantly reduce the percentage of ownership and potential future earnings.
Pain Points
- Difficulty in understanding the long-term value of initial equity
- Uncertainty about the impact of future funding rounds on ownership
- Lack of clear information on best
- worst
- and average case scenarios for equity dilution
A friend of mine got about 1% in Harness IO when it started back in 2017. In a wildly successful situation like that of harness, how does dilution work and what’s the current worth? Asking coz I am considering a startup myself and looking at equity in that range, trying to work out best , worst and average case scenarios