> Hiring is the primary source of dilution at new companies. Is that true? Gener... | Hacker News

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		JonFish85 on Jan 18, 2017 \| parent \| context \| favorite \| on: What I Wish I'd Known About Equity Before Joining ... > Hiring is the primary source of dilution at new companies. Is that true? Generally don't companies set aside ~5% of the company for employees? Even the first 5 employees probably get a combined total of less than 10%, whereas the first investors probably get 10+%.

danielweber on Jan 18, 2017 [–]

I agree with you. The dilution events happen because something unexpected happens, not because "we had to hire people."

If people are getting diluted from shares being issued to employees like you, you have already entered a death spiral.

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