You startup, get a bit of cash and then sell ... Now the math is a little funkier here in how you calculate the ESOP and dilution, otherwise, everything is the same math as before.

Through this article, we address the frequently asked questions about one of the most important aspects of a startup — Equity Dilution. The answer to this question is best explained with an example.

Valuation is fundamental to startup fundraising. Setting the tone when negotiating with your first investors is vital at the pre-seed stage. It determines equity dilution and signals the startup’s ...