Equity Dilution: Protect Your Cap Table With Debt

techadmin

Jul 16, 2025 — 1 min read

Every 1 % of equity today could be millions at exit. Yet founders often give it up to avoid interest costs.

Fast Calculator Exercise

Enter current valuation, target raise, and projected exit value.
Compare founder ownership under equity-only vs mix of equity + revenue-share loan.
Note how a 10 % debt component can preserve several percentage points of ownership.

Action Steps

Model multiple scenarios before every fund-raise.
Share dilution charts with early employees—they care too.
Keep repayment curves realistic; don’t starve growth to pay debt.

Keywords: equity dilution vs debt, founder ownership, non-dilutive capital, startup funding UAE
Hashtags: #KlubAI #EquityDilution #NonDilutiveFunding #StartupFinance #CapTable

Disclaimer: Illustrative only; consult a financial advisor before structuring your round.

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Build a 90-Day Emergency Liquidity Kit—Before You Actually Need It

Debt Stack Jenga—Spot the Wobble Before It Falls

Repayment Shapes 101—Choose a Curve Your Cash Can Afford

Exit-Ready Hygiene: Clean Up Debt Before Investors Start Digging