Equity and dilution
4 cards · about a minute · 26 October 2026
- 1 of 4
Equity is ownership of your company, split into shares.
- 2 of 4
Each time you raise money, you sell new shares to investors.
- 3 of 4
100% → 65%
Example: founders after two rounds
Your slice gets smaller. That's dilution.
- 4 of 4
A smaller slice of a much bigger pie can be worth far more.
Test yourself
When you raise money by selling new shares, your ownership…
- Goes up
- Gets smaller
- Stays exactly the same
Show the answer
Gets smaller. That's dilution. A smaller slice of a bigger pie can still be worth more.
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