Glossary

Dilution

The reduction in an existing shareholder’s percentage when new shares are issued.

Every round, option pool increase and SAFE conversion dilutes founders. Typical dilution is 10 to 25 percent per round; what matters is ownership at exit, not at seed.

Related free tool

Learn the words, then get the score.

A free Founder Starter account gives you SeedScope’s startup score, a risk assessment and a summary, and puts your profile in front of investors. Founder Pro adds the full valuation, exit odds and the investors who viewed you, by name.