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Isn’t that done with already existing shares (from the founders)? Then it wouldn’t be dilution.


No.

The main purpose of a funding round is for the company to sell shares and receive cash (e.g. to spend on marketing), not for founders to sell shares and receive cash (e.g. to spend on Ferraris).

(Sometimes, at the same time as a funding round, founders may also sell some existing shares to the new investors.)




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