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The Surprising Math Behind Startup Dilution

2013 March 26 / Leave a comment

This recently blew my mind, so I thought I’d share some simple math with you. Imagine an investor wants to invest in your startup.  He says it’s worth $1 million and he wants to invest $500,000.  He’s going to take half your company, right?  Wrong.  He’s going to take one third.  At least, that’s the […]

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