Funding Rounds and Dilution

prog swamp blues, dark goa trance · 4:52

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Lyrics

[Verse 1]
Started with an angel check, a humble twenty grand
Prototype assembled in your bedroom, sketched by hand
Seed round brings a million, gives you runway to survive
VCs want their percentage when your startup comes alive

[Chorus]
Every dollar raised means slices of the pie
Series A through C, watch your ownership fly
Dilution calculation, multiply and divide
Keep your voting power or get pushed to the side

[Verse 2]
Series A hits hard with five million on the table
Institutional investors want a board seat at your table
Twenty percent dilution shrinks your founder equity
But capital injection builds your tech capacity

[Chorus]
Every dollar raised means slices of the pie
Series A through C, watch your ownership fly
Dilution calculation, multiply and divide
Keep your voting power or get pushed to the side

[Bridge]
Pre-money valuation sets the negotiation stage
Post-money shows the total after investor wage
Anti-dilution clauses protect the early players
Liquidation preferences stack up in different layers

[Verse 3]
Series B and C bring growth equity funds
Fifty million rounds for marketing and product runs
Your five percent remaining from the hundred you began
But company worth billions makes you wealthy in the end

[Chorus]
Every dollar raised means slices of the pie
Series A through C, watch your ownership fly
Dilution calculation, multiply and divide
Keep your voting power or get pushed to the side

[Outro]
Option pools and warrants, phantom shares to grant
Employee compensation, equity you can't
Forget the human capital that builds your company dream
Funding rounds keep flowing like a never-ending stream

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