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Early stake dilution raises red flags…

Financial Express Ahmedabad

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October 09, 2025

PEER PRESSURE ALSO plays a role.

If one startup raises $15 million by giving away 40%, others in the same space feel compelled to match that level, even when it may not suit their needs. Some founders cite examples of highly diluted peers who still built enduring businesses, pointing that the outcome validates the trade-off. But according to analysts, such outliers create distorted benchmarks.

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