Ask HN: Is it usual for first investors share to dilute down upon next rounds

Posted by rustyhacker on Wednesday August 16, 2017 @08:20AM
from the ask-hn dept.

When an early (seed) investor puts $100k for 15% of the company; in future rounds of fund raising, should that early investor's shares dilute down?

( 1 comment | 3 points | on HN )

Re:Ask HN: Is it usual for first investors share to dilute d... by Amir6 on Wednesday August 16, 2017 @09:52AM (#15027426)

What other fair option is there?

AFAIK every single share holder dilutes down. Otherwise founders will be left with close to nothing after a couple of rounds.

One exception that comes to mind is regarding unicorns like Snap which founders still have 40+ % share.

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