Understanding startup equity can be confusing, this post attempts to explain what I've learned about it over the years.FundraisingTo kick off the discussion on fundraising, I'm going to first illustrate a basic example of what a fundraising round might look like. Company A has 1000 shares. The founder of the company owns 100% of the shares (1000 shares). Now, the founder is seeking an investment to expand the business. She finds an investor that is willing to purchase 100 shares of ...

Understanding startup equity can be confusing, this post attempts to explain what I've learned about it over the years.FundraisingTo kick off the discussion on fundraising, I'm going to first illustrate a basic example of what a fundraising round might look like. Company A has 1000 shares. The founder of the company owns 100% of the shares (1000 shares). Now, the founder is seeking an investment to expand the business. She finds an investor that is willing to purchase 100 shares of ...