Equity Dilution: Protect Your Cap Table With Debt

Equity Dilution: Protect Your Cap Table With Debt

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Wed Jul 16 2025

1 min read

techadmin

techadmin

Every 1 % of equity today could be millions at exit. Yet founders often give it up to avoid interest costs.

Fast Calculator Exercise

  1. Enter current valuation, target raise, and projected exit value.
  2. Compare founder ownership under equity-only vs mix of equity + revenue-share loan.
  3. Note how a 10 % debt component can preserve several percentage points of ownership.

Action Steps

  • Model multiple scenarios before every fund-raise.
  • Share dilution charts with early employees—they care too.
  • Keep repayment curves realistic; don’t starve growth to pay debt.

Keywords: equity dilution vs debt, founder ownership, non-dilutive capital, startup funding UAE
Hashtags: #KlubAI #EquityDilution #NonDilutiveFunding #StartupFinance #CapTable

Disclaimer: Illustrative only; consult a financial advisor before structuring your round.

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