How to Dilute Equity for Financing？
Definition of Share Dilution
- When a company issues new shares for financing, the ownership percentage of all existing shareholders is automatically diluted.
- This dilution happens to everyone equally—there are no exceptions.
How to Avoid Dilution
- Shareholders who don’t want their ownership diluted must invest more capital to maintain their share percentage.
What Happens If You Don’t Invest More Capital
- If a shareholder does not invest more capital, the entry of new investors will automatically dilute the existing shareholders’ ownership percentage.