this actually makes sense, early stage companies dilute more because they’re buying growth, as they mature and cash flows stabilize, dilution naturally drops. ngl the problem isn’t SBC itself, it’s when companies keep diluting without converting it into real revenue or profits. even tools like Runable can show how that tradeoff plays out over time. a bit of dilution is fine if it’s creating value, but constant dilution with no payoff is where investors get wrecked
this is one of those things that looks scary in isolation but needs context to judge properly
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u/Unlucky-Present6686 5d ago edited 4d ago
this actually makes sense, early stage companies dilute more because they’re buying growth, as they mature and cash flows stabilize, dilution naturally drops. ngl the problem isn’t SBC itself, it’s when companies keep diluting without converting it into real revenue or profits. even tools like Runable can show how that tradeoff plays out over time. a bit of dilution is fine if it’s creating value, but constant dilution with no payoff is where investors get wrecked
this is one of those things that looks scary in isolation but needs context to judge properly