Work out equity dilution instantly with clear inputs, formula shown and shareable results.
Dilution is the fall in your percentage ownership when new shares are issued. Your share count is unchanged; the denominator grows. Distinguish the absolute fall in percentage points from the relative dilution of your stake — the latter is what matters for value.
Ownership after
Ownership % = Your shares / (Total shares before + New shares) x 100
Relative dilution
Relative % = (Before % - After %) / Before % x 100
No. A smaller share of a much more valuable company is worth more. Dilution only destroys value when the round is priced below what the capital can generate.
Contractual protections, usually for preferred investors, that adjust their conversion price if a later round is priced lower. Founders and common shareholders bear the adjustment.