Do you have to get diluted?
Like, can you get forced to sell?
Like, can you get forced to sell?
The company issues new shares for the investors and new hires.
So, you might start with 100,000 shares and 10% of the company, but by IPO, there could be 100,000,000 shares, giving you 0.1% of the company.
(These numbers are completely made up, though if the company ipo’s for $1B, that’s $10/share which is a plausible price per share. Companies often grant additional shares to early employees.)