GraphedMinds
The Startup Ideas Podcast

The Startup Ideas Podcast

The best businesses are built at the intersection of emerging technology, community, and real human needs.

Back to Quotes
Equity is the most expensive currency
equityfundraisingdilution

What It Means

Every dollar raised through equity dilutes ownership permanently, while runway extension through cuts or revenue costs zero ownership

Why It Matters

Early-stage equity given up compounds with future valuations - $500K at $5M post costs $2M at $20M exit

When It's True

For startups with potential for meaningful exits where long-term ownership percentage matters to founders

When It's Risky

When growth speed is critical for competitive positioning or market timing requires rapid scaling

How to Apply

1

Calculate true ownership cost of each funding round

2

Exhaust expense cuts and revenue growth before fundraising

3

Bootstrap longer in highest-dilution early stages

4

Compare ownership percentages: 30% of $20M vs 80% of $10M

Example Scenario

Founder chooses to cut $40K monthly burn instead of raising $500K, extending runway 12 months with zero dilution versus giving up 10% ownership

Related Knowledge