The 1,000 contractors in India working on the company’s Just Walk Out technology offer a stark reminder that AI isn’t always what it seems.

TL;DR: In an equity round, including seed equity, any post-closing dilution is shared proportionately between investors and common stockholders (founders and employees). This is fair. Assuming no shenanigans and the business is increasing in value, why shouldn’t dilution be shared?

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The most important principle: Fairness, and the perception of fairness, is much more valuable than owning a large stake.