Dilution can be a double-edged sword for pre-seed founders. Raising more capital will be essential to fund their startup's growth, but on the other hand, dilution reduces their ownership stake in the company (less control, less decision-making power). Also, some VCs may require significant equity ownership as part of their investment terms, which can lead to substantial dilution for pre-seed founders. Here are best practices on how to shield yourself from this: 1?? Raise only what you need. Over-funding can dilute your ownership stake. Accurate budgeting and raising only what you need to achieve the next milestone makes for a more efficient dilution control. 2?? Negotiate the best terms. Aim to negotiate the most favorable terms with your investors: higher valuation, lower equity or convertible debt. The balance to maintain here is to have investor-friendly terms that are fair for both parties. 3?? Grant equity responsibly How much equity you give to employees, advisors, and other stakeholders matters when it comes to avoiding excessive dilution. One VC told me if they see an Advisor on the Cap Table with double-digit equity ownership, they will be asking what they bring into the business. 4?? Go non-dilutive. Consider other forms of capital when available - e.g. debt and revenue. Product-led businesses typically have fast pathways to profitability. Build a business model in a way that supports revenue generation from the earliest stages. Anything else - feel free to add in the comments! #capitalraising #vcfunding