Fully Diluted Shares

Définition

Fully diluted shares count all shares outstanding plus everything convertible into shares: options (granted and often the unallocated pool), warrants, SAFEs, and notes.

Comment cela se présente dans le financement

Valuations and ownership percentages are negotiated on a fully diluted basis, so a “10 percent” stake means 10 percent after all instruments convert.

Questions fréquemment posées

Why do investors insist on fully diluted math?

It prevents ownership from being quietly eroded by instruments that convert later; everyone negotiates against the same complete denominator.

Does the unallocated option pool count?

Usually yes in venture negotiations, which is why pool expansions before a round effectively come out of founder ownership.

Mettez ce terme en pratique

Les définitions ne gagnent des négociations que lorsque vous y êtes. Trouvez les investisseurs qui financent votre étape et commencez la conversation.

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