How do promoters get diluted when raising money?
1 Answer(s)
vishwajit.dhere
suppose 2 people A & B have started the company with 50%-50% partnership.
To raise money if they decide to dilute 10% of the company then dilution takes place as follows,
A's 50%*10%=5% will be diluted and
B's 50%*10%=5% will be diluted.
Aug 26 2014 04:49 PM
To raise money if they decide to dilute 10% of the company then dilution takes place as follows,
A's 50%*10%=5% will be diluted and
B's 50%*10%=5% will be diluted.