[geebee]

Interesting bit about diluting shares when new investment comes in. Joel's answer is very simple and seems extremely fair.

How common is this straightforward approach, where everyone is diluted in the same ratio of existing shares to new shares? I'd be interested in hearing about experience/knowledge other people may have had here.

[tptacek]

Not super common in my experience; typical equity schemes are both much fussier and way more opaque.