Why Do Later Startup Rounds Dilute Founders Less?

David Tisch says fast-growing companies now give up far less of the company in later rounds, so an early check gets diluted less. Series B, C, and D rounds come in at 3% to 8% dilution instead of 12% to 20%.

He still says yes when a founder he wants will raise 10 to 20 from someone else. Two conditions keep high starting prices from wrecking venture economics. Ten years ago a $10 billion company was farfetched. Today he looks at an early company and treats a $10 billion outcome as normal, versus a billion, with anomalies past it in valuation, acquisition, and future IPOs. Lower dilution across multiple later rounds is the second condition, and the early investment simply gets diluted less.

Box Group invests in a wider set of companies without an ownership target on each deal. A portfolio filled only with $20 million seeds at a 200 million pre would fundamentally change the business. He wants portfolio balance across entry prices, not a rigid target on every individual deal.