Digital TransformationStartup Ecosystem
The dilution math every founder needs to know before raising a round
Sixty-nine percent of co-founders in digital health IPOs owned less than five percent of their company when they went public. Forty-four percent had no reported equity at all. The median individual founder ownership at IPO was just two percent.
Those numbers should make every founder sit up straight. But here is the caveat. Those are digital health companies. They eat cash for breakfast. A lean B2B SaaS startup with good unit economics will do much better. Still, the trend is real. Founder ownership gets eaten alive by funding rounds.
The question is not whether you will get diluted. You will. The question is how much you can protect, and whether what is left at the end is worth the years you gave.
This guide walks through the math in plain English. No complex spreadsheets. Just clear numbers, real examples from Careem and Daraz, and the legal stuff you actually need to know. From the option pool shuffle to anti-dilution clauses, here is what founders should understand before they sign their first term sheet.