Share your insights or perspective on the financial matter presented in the input.

Ownership in company and rounds of investment
Say the company has created 500 shares [or whatever number]. You have 10 shares [equivalent of 2%]. Now when new capital is needed, generally more shares are created. Say they create 100 more shares and sell it to venture capital to raise funds. After this happens; Total Shares: 500+100 = 600 You own: 10 shares Your Ownership % = 1.66% down from 2% Like wise for other older shareholder. The New Venture guy gets 16.66% of ownership.   More funds would mean more growth and overall the value of your 10 shares would be more depending on the valuation.