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missedthecue • today at 6:17 PM • 0 replies • view on HN

New shares take away from existing shareholders in every circumstance except one: that the money raised is invested in a way that durably grows the business in excess of the dilution.

Every story where a company sold for an amount that wiped out employee equity (for example every Bending Spoons acquisition) is because they raised too much and it never materialized into (sufficient) growth.