Equity Dilution Math

If you are an entrepreneur and you are asking yourself about the pros and cons of venture debt versus raising venture capital, here is a wonderful post about “How Equity Dilution Works.”

Think of a paper napkin. Fold it in half. Fold it in half again. Fold that in half again. Now you have a 1/8, and hopefully on the road to the CEO promised land. Same goes, I’m told, for the 3rd marriage crowd.

MRM