Re:Questions to Ask Before Joining a Startup
by SkyPuncher on Monday November 26, 2018 @11:08AM
(#18534284)
> I have no idea why dilution attracts so much verbiage that's out of proportion to its mathematical importance.
Emotions.
It's the same reason why many SMB owners get caught up in the 50/50 vs 49/51 split (when there are other, better ways of resolving the voting right aspect) or squabbling over a couple of percent in an investment deal.
Logically, the differences are trivial, are likely to be diluted out anyways, and ultimately matter little compared to other factors.
Emotionally, it feels huge. It "feels" like you're giving something up. On a pizza, "50%" is better than "10%" because it's clearly more of the pizza. Same with many tangible things in life.
Emotions.
It's the same reason why many SMB owners get caught up in the 50/50 vs 49/51 split (when there are other, better ways of resolving the voting right aspect) or squabbling over a couple of percent in an investment deal.
Logically, the differences are trivial, are likely to be diluted out anyways, and ultimately matter little compared to other factors.
Emotionally, it feels huge. It "feels" like you're giving something up. On a pizza, "50%" is better than "10%" because it's clearly more of the pizza. Same with many tangible things in life.