Redefining Dilution

I didn’t know where to put this article but I think all investors, interested in investing in start-ups, should read this. The biggest takeaway is ‘dilution’ on ‘burn-rate’ instead, of ‘dilution’ on ‘capital raising’. Very interesting article:

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I thought this was an interesting piece on the effects of dilution. Tech Company Dilution: Finding Ground Truth

“It’s wild to think that LYFT is diluting at 9% per year, the market capitalization of the business would need to double just to keep the stock price flat over an 8 year period.”