Sentences with phrase «equity dilution»
Equity dilution refers to a situation where the ownership stake or percentage of shares held by existing shareholders in a company decreases. This generally happens when new shares are issued, such as during a funding round or when employee stock options are exercised. As more shares are introduced, the existing shareholders' ownership becomes a smaller fraction of the total company. This reduction in ownership percentage is known as equity dilution. Full definition
On the plus side, KMI is no longer staring at mountains of debt (S&P graciously took them off negative credit watch) or potential equity dilution in order to reinvest in their business.
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How can entrepreneurs protect themselves and their teams from equity dilution when raising money at the early stage?
When founders sometimes bring in co-founders, they are concerned about equity dilution.
The best investors know that unnecessary speeding causes unnecessary equity dilution but even more importantly they know that founders who spend money on frivolous things wastes precious resources that may determine the difference between life or death for the business.
I wanted to understand how equity dilution above or below book value can be good or bad for existing shareholders.
«We believe having a mix of fully - owned and investor - owned mining rigs will allow us to appreciably expand our cryptocurrency footprint with less equity dilution.
I think its very dangerous to see that number before you've finished your work which involves careful thinking about various variables including business volume growth, realization growth, profitability, potential equity dilution, dividend policy, capital structure related issues and earnings multiple expansion / contraction.
Every startup needs to start their funding search looking for grants, with no equity dilution, as well as contests and foundations.
But I have found that for an early - stage, technology - intensive start - up, government funding can nicely complement a seed - stage equity investment, reducing the equity dilution to the founders, increasing the capital available for commercialization, and providing critical leverage that neither source of funding could provide on its own.
Assume further that the earnings of the company will continue to grow for a long time, without any equity dilution.