What this teaches
The 1/(1-n) rule: give up n% of your company only when the trade makes the remaining stake worth more than the whole was before. Applies the same math to investors, hires, and co-founders.
Why it matters
A single formula that answers 'should I take this money at this dilution' rationally.
Key lessons
- An equity trade is good if it makes your remaining share more valuable
- The same math governs investor dilution and key hires
- Valuation is an input to the equation, not the score
Building your investor list? Browse 1,000+ investor profiles on VCMatch and find the funds that actually match your stage and sector.