Founder Playbook
Founder Equity Dilution: The Four Mechanisms That Shrink Your Stake and the Terms That Decide How Much
Founder equity dilution occurs through four primary mechanisms: new investor shares, option pool expansion, convertible instrument conversion, and anti-dilution provisions. Understanding and modeling these on your cap table is crucial for negotiating terms that protect your stake.
Marek Kowalski·October 23, 2026
