Can my investment be diluted in future funding rounds?Updated 3 days ago
Yes, like shareholders in most companies, your ownership percentage may reduce as new shares are issued in future funding rounds. This is known as dilution and is a normal part of growing a business.
It's important to remember that dilution doesn't automatically reduce the value of your investment. If the company continues to grow and becomes more valuable, a smaller percentage of a much larger business can still be worth significantly more than a larger percentage of a smaller one. Please be aware that the value of your investment can go down as well as up. This is a high risk investment and you may lose your money.