Dilution occurs when a company issues additional shares, reducing the ownership percentage of existing shareholders. As more shares are introduced into the market, each share's claim on the company's ...
For startup founders, few concepts are as important—or as commonly misunderstood—as dilution. It often first arises during a financing round, when investors receive equity (i.e., shares) in exchange ...
Anti-dilution protection in VC agreements shields earlier investors by preventing ownership dilution from new shares issued at lower prices. Anti-dilution protection is like a safety net for investors ...
Founders frequently underestimate the equity dilution impacts of funding rounds and employee stock option plans (ESOPs). Consider two stark examples: Eric Yuan's ownership in Zoom dwindled to 22% by ...
Rekor Systems shows low organic growth, high financial leverage, and significant unprofitability, making it a Hold despite a $100M+ market cap. The company’s heavy reliance on acquisitions for growth ...