Raising money
Dilution
Dilution is the drop in your ownership share that happens when your company issues new shares, even though the number of shares you hold stays the same.
Also called equity dilution
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New shares can go to investors, to an option pool for future employees, or to a SAFE (simple agreement for future equity) turning into shares. The total grows, so each existing share is a smaller slice. Dilution happens in almost every round that issues new shares.
This is not legal or tax advice, check with a lawyer or accountant.
What recent Carta data says
On Carta, from July to September 2025, software startups sold a median of 19% to 20% of the company in a seed round.
- Median share of the company sold in a seed round, software, July to September 2025: 20% non-AI, 19% AI. Source: Carta, State of Seed, Winter 2025.
- Median share the founders still own, counting every share and option, after the seed round and the next three priced rounds (Series A, B and C), for rounds raised 2021 to 2025: 55.8%, 36.2%, 23.2%, 16.4%. Source: Carta, Founder Ownership Report 2026.
Companies and rounds on Carta, not the whole market. As of 5 November 2026.
When this shows up
Example, not a real founder: you raise money on SAFEs, then a priced round (investors buy shares at a set price per share) that also adds an option pool. You expected to give some ownership to the new investors. You did not expect the SAFEs and the pool to shrink your share again in the same round.
What to do next
Build a simple sheet listing every new share planned for your next round, including conversions and the pool. Check your ownership after all of them together.
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