How to Manage Equity Dilution as an early-stage startup?

Preeti Karna Preeti Karna
May 27, 2022 1 min read
How to Manage Equity Dilution as an early-stage startup?

Sharan Goyal - Founder and Director, Crozzo

As founders, we want to keep as much skin in the game as possible. It helps us stay hungry, aggressive, and focused on our goals. When you are looking for hyper-growth, you ne

ed to raise funds. A good way to do this without diluting too much equity early on is to get creative in the way that you structure your round. One option is a convertible note. It is effectively a round of debt financing which converts to equ

ity on a mutually agreed upon date, at a mutually agreed-upon valuation. Another is CCPS - compulsorily convertible preference shares. These offer the flexibility of financing as and when needed.

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