Dilution Illustrations

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Holloway Guide ToEquity Compensation
Common questions covered here
How is dilution best illustrated?
How does dilution work for existing shareholders when the startup raises another round of funding?
What happens to the value of my shares when more shares are issued?

Dilution Illustrations

These visualizations illustrate how ownership of a venture-backed company evolves as funding is raised. One scenario imagines changes to ownership in a well-performing startup, and the other is loosely based on a careful analysis of Zipcar,* a ride-sharing company that experienced substantial dilution before eventually going public and being acquired. These diagrams simplify complexities such as the ones discussed in that analysis, but they give a sense of how ownership can be diluted.

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