Dilution is based supply and demand. There is no direct science for this, its more an art.
Aug 24 2013 09:47 AM
Dilution depends on the following factors -
1) Company's financial performance
2) Market size
4) Customer Satisfaction
5) Team etc
The better the above 5 characteristics the lower the company has to dilute. If these 5 characteristics are not very interesting then company will have to dilute more.