Raising money
Dilution
Dilution is the drop in your ownership share that happens when your company issues new shares, even though the number of shares you hold stays the same.
Also called equity dilution
New shares can go to investors, to an option pool for future employees, or to a SAFE (simple agreement for future equity) turning into shares. The total grows, so each existing share is a smaller slice. Dilution happens in almost every round that issues new shares.
This is not legal or tax advice, check with a lawyer or accountant.
When this shows up
Example, not a real founder: you raise money on SAFEs, then a priced round (investors buy shares at a set price per share) that also adds an option pool. You expected to give some ownership to the new investors. You did not expect the SAFEs and the pool to shrink your share again in the same round.
What to do next
Build a simple sheet listing every new share planned for your next round, including conversions and the pool. Check your ownership after all of them together.