When investors talk about dilution numbers they only present the best case scenario, and this post is no exception.<p>If you really want to understand dilution, don't look at the best case. You need a graph showing your payoff as a function of exit size. Pay special attention to the range where liquidation preferences and multipliers kick in, because the sharks aren't going make you an infographic for that case.
Informative in a nice visual way.<p>Bottom line #1 - the actual sale price of the startup can have very little to do with what the founders get to take home (especially after taxes).<p>Bottom line #2 - (obviously) increase the startup value by orders of magnitude if looking for FU money.