Her ownership = 10,000 / 5,010,000 ≈ 0.0019968 ≈ 0.20%

February 22, 2026

Her ownership = 10,000 / 5,010,000 ≈ 0.0019968 ≈ 0.20%

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An investor owns 10,000 shares at $3 each. The company raises funds at $2 per share, issuing 5 million new shares. What percentage of the company does she own post-dilution?
Total new shares = 5,000,000
Total shares post = original + new = 10,000 + 5,000,000 = 5,010,000
Final decision: use clean CAGR and growth questions.
A startup’s valuation grows from $500,000 to $2 million in 4 years. What is the compound annual growth rate (CAGR)?
CAGR = (2,000,000 / 500,000)^(1/4) – 1 = 4^0.25 – 1

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