3 charts that show the effect of venture fundraising on founder ownership
Raising money inevitably dilutes the stakes of company investors, employees and founders, but the idea is that a growing valuation results in a net positive, as it increases the value of everyone’s now-smaller slice of the pie. That’s how we end up with billionaire founders like Bill Gates, Jeff Bezos, Mark Zuckerberg, etc. Read the full Pitchbook article here.