Episode 3 of 6
The Dilution Trap
The Series B would raise $8M at a $30M pre-money valuation. Fiona's 12% stake gets diluted to 9.2%. She models whether the higher valuation compensates for the smaller slice — and discovers the answer depends entirely on the exit multiple.
Key Insight
After Series B dilution, Fiona needs a $40M+ exit to match the $1.6M she would net from a $15M acquisition today. If the company exits below $25M post-Series B, she is worse off than selling now. The dilution break-even is 2.7x the pre-money valuation.
Model This Scenario