Try GOLD - Free
Early stake dilution raises red flags for startup health
Financial Express Kolkata
|October 09, 2025
Young founders weigh speed and scale against long-term ownership
A GROWING NUMBER of young startups are racing to scale up by giving up large chunks of equity early. Founders of at least 11 early-stage ventures have diluted more than 40% ownership in their recent fundraises, according to data from TheKredible. While this injection of capital has pushed up valuations and validated the promise of the ecosystem, analysts said that the consequences of such early dilution could prove damaging over time.
The cause of this trend lies in the pressure to grow fast and capture market share before competitors close in. Founders, confronted with uncertain later-stage fundraising markets, are increasingly opting for firepower today over ownership tomorrow. The effect, according to analysts, could be that they may end up with too little stake in their own ventures when the real battles for scale and sustainability unfold.
This story is from the October 09, 2025 edition of Financial Express Kolkata.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Financial Express Kolkata
Financial Express Kolkata
Growth-stage funding consolidates as investors seek quality
AFTER YEARS OF muted activity in India’s growth-stage funding market, Series Band C rounds are showing strong signs of capital consolidation this year, even as the overall funding continues to dip.
2 mins
December 15, 2025
Financial Express Kolkata
From catch-up to contender: How Gemini is challenging GPT
RAM SAID THAT Perplexity is strengthening its niche in citation-backed research, functioning as a precision search tool in contrast to legacy “needle-in-a-haystack” search models.
2 mins
December 15, 2025
Financial Express Kolkata
FMCG growth slips in Nov, but rural gallops
INDIA'S FAST-MOVING CONSUMER goods (FMCG) market has slipped in November due to price cuts triggered by the GST rate changes.
1 min
December 15, 2025
Financial Express Kolkata
Fintechs eye gains from cross-border payments
Easier RBI norms end dependence on banks, open up the market
2 mins
December 15, 2025
Financial Express Kolkata
Nifty still fumbling at the top
THE NIFTY CLOSED Friday with a gain of 148 points or 0.57%, ending the week at 26,046, but still recording a weekly loss of 140 points or 0.53%.
2 mins
December 15, 2025
Financial Express Kolkata
Gold, silver rally to extend record run, say analysts
GOLD AND SILVER prices are poised to maintain their record-setting rally in the coming week as investors focus on global inflation data and key macroeconomic indicators that shape central bank policy paths, analysts said.
1 min
December 15, 2025
Financial Express Kolkata
Ukraine prez drops plans to join NATO
UKRAINE HAS RELINQUISHED its ambition of joining the NATO military alliance in exchange for Western security guarantees as a compromise to end the war with Russia, President Volodymyr Zelenskyy said ahead of talks with US envoys in Berlin.
1 mins
December 15, 2025
Financial Express Kolkata
India ranks 3rd in Stanford Global AI Vibrancy tool
INDIA HAS BEEN ranked third in Stanford University’s 2025 Global AI Vibrancy tool, which shows progress made across seven pillars comprising research and development, talent, infrastructure, in a year.
1 min
December 15, 2025
Financial Express Kolkata
Major customs rejig on the anvil
THE GOVERNMENT MAY undertake a major exercise to reduce the basic customs duty or import tariff on a large number of goods, especially critical raw materials and intermediate goods, in the Budget for FY27.
1 min
December 15, 2025
Financial Express Kolkata
Warner Bros. bidders are having a rough time
THE DUELLING SUITORS for Warner Bros. Discovery have had a rough week. Will this rule out an auction? Don’t count on it.
3 mins
December 15, 2025
Listen
Translate
Change font size