If each investor receives voting rights for company decisions based on share ownership, every shareholder has 10% control.
If a company issues 2,500,000 = (approx)= 1,250,000 shares
example: If the company issues another 25,000,000 options or shares over the intervening five years so there are 50,000,000 shares at the IPO (typically either as part of fundraising including an IPO or to hire employees), you’re left with .01% – one basis point or half of your original percentage. You have had 50% dilution. You now make half as much for the same company value.
hope it understands !
