Re:Startup options are better than they look (2017)
by loeg on Saturday October 05, 2019 @10:04PM
(#21169359)
The point is that dilution works by creating new shares out of thin air -- the total number of shares increases. Meanwhile, the total percent remains 100%, for obvious reasons.
Re:Startup options are better than they look (2017)
by luckylion on Sunday October 06, 2019 @02:02AM
(#21170114)
Sure, but that doesn't change whether you're giving out a number of shares or a percentage, because both are the same, just expressed differently. There's no common theme where somebody says "here are 0.1% of the company" and implies anti-dilution. It's just easier to talk about percentages than shares, because it's easier to calculate if you know the total valuation. You'll dilute in both cases.
You won't stay at that percentage though, unless the founders agree to protect you from dilution. In that case, they'd compensate you with some of their own shares whenever you dilute to keep your percentage the same. It's not common for employees though.