{{brizy_dc_image_alt entityId=
Understanding The Investors Stairway.
It is important to understand why dilution matters at different stages of startup funding. Remember that if you decrease existing shareholders' ownership percentage by increasing the number of shares, it may improve opportunities for fund growth and the company's value! The attached image stairway illustrates this dynamics.

Rule: Owning a smaller share of a much larger company is often worth more than keeping all of a small or struggling business.

Entrepreneurs need to realise that owning a smaller share of a much larger company is often worth more than keeping all of a small or struggling business. Dilution is part of growing your company. It brings in the money needed to hire people, build your product, and find customers, all of which help your company become more valuable.

The investors' stairway.

The investors' stairway, illustrated here, also known as the Venture Capital (VC) or Funding Stairway, is a model that outlines the typical steps a startup takes when raising capital, from the early stages to a more established phase.

It is important for entrepreneurs to understand this model to successfully raise funds. Read more at innovastart.com