AK News Early stake dilution raises red flags for startup health

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Early stake dilution raises red flags for startup health

Published on: Oct. 9, 2025, 9:06 a.m. | Source: The Financial Express

Startups are sacrificing a significant portion of their ownership to rapidly expand and gain market dominance, but this could have negative effects in the future. This is due to the pressure to grow quickly and the unpredictable fundraising market. Dilution can limit a founder’s control and make future funding rounds more challenging. | financialexpress.com

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