I don't know how much this *really* affects dilution. Without YC doing this, you... | Hacker News

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dsugarman on July 22, 2015 | parent | context | favorite | on: Pro Rata

I don't know how much this really affects dilution. Without YC doing this, your shares would represent 80% of their previous value (X + .2 Z = Z). If YC adds so it maintains 7%, you would have 78%(X + .2 Z + (.07 Z - 0.07 X) = Z, .93 X = .73 Z)

So if you have 30% right now, you would have either 24% without YC taking part or 23.4% if they do.

frisco on July 22, 2015 [–]

To put this in perspective, that's several engineering hires worth of equity at that stage on average.

dsugarman on July 22, 2015 | [–]

I think that puts the opposite into perspective, how much adding an engineer affects dilution (hard to notice).

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