I personally hate infographics but sometime they are just the best way to make something instantly clear. This goes also for the one below.
When mentoring start-ups and talking about equity, cap-tables, funding rounds etc. the term “dilution” come sup time and again. For most first time founders it has no meaning, they just want to get funded, bring their product to market and exit. During these funding rounds they sometimes get what’s know in industry terms “diluted to f*ck”.
Have a look at the below infographic and you will understand: