How Fundraising Dilution Works
Every time you raise capital, you are issuing new shares, which reduces the percentage of the company owned by existing shareholders. Standard startup dilution for a Seed or Series A round typically falls between 15% and 25%.
The Post-Money Formula
Your ownership is calculated based on the post-money valuation:
Post-Money Valuation = Pre-Money Valuation + Investment
New Ownership = (Pre-Money / Post-Money) * Old Ownership