HOW MUCH EQUITY Should You Give Away?

A Startup's Guide to Dilution, SAFE Notes, and Protecting Ownership

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For every startup founder, deciding how much equity to part with is one of the most critical-and least reversible-decisions of the journey. Whether you are raising your first cheque, joining an accelerator, or bringing in early team members, equity is the currency you exchange for capital, expertise, and commitment.

Handled wisely, it can build momentum.

Handled poorly, it can cost you control.

UNDERSTANDING EQUITY AND DILUTION

Equity represents ownership in your company When you issue new shares to investors, advisors, or employees, your personal percentage decreases-this process is callec dilution.

Dilution isn't inherently bad; it is how companies grow. The key is ensuring that each dilution event creates greater overall value.