In staged financing, the expected effect of future dilution is borne by both founders and the investors currently seeking to invest.

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In staged financing, the expected effect of future dilution is primarily borne by the founders and the current investors, but future investors who participate in later rounds of financing will typically buy in at higher valuations, thus diluting the stakes of earlier investors and founders, not sharing the burden of dilution equally with current investors.

In Staged Financing, the Expected Effect of Future Dilution Is