Dilution

The reduction in your ownership percentage that happens whenever your company issues new shares — even though the company itself may be worth more afterward.

Quick Answer

Does dilution mean I'm losing money?

Not necessarily — your percentage ownership goes down, but the company's total value often increases enough that your shares are still worth more in dollar terms, even at a smaller slice of a bigger pie.

Percentage and dollar value can move in opposite directions
A bigger pre-money valuation for the same raise means less dilution
Model both the percentage and the dollar impact before a round

The Lovie Advantage

Lovie shows your ownership percentage and its dollar value side by side for every scenario, not just one number in isolation.

See how this connects to Pro-Rata Rights. For the formal definition, see Investor.gov's glossary entry on capital gain.

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