As a startup founder, there are various pitfalls that can cause you to lose control of the vision and future trajectory of your business. One such pitfall is something called equity dilution, which often happens unintentionally but can have very real implications for founders.

Equity dilution occurs when additional shares are issued in a company, resulting in the original shareholders owning less than their initial percentage stake; consequently, it can lead to losing ownership control and influence within the company if not managed properly.