Equity and Dilution

B2 · Upper-intermediate1 hr 14 minStartup EnglishLesson 3 of 8 · Outline

Aims

Goal: explain dilution to a co-founder with real numbers across three rounds — same shares, smaller percentage — and argue the capital-efficiency trade-off.

The lesson, stage by stage

  1. Warm up5 min

    Warm-up: The shrinking slice

    2 warm-up questions

  1. Reading10 min

    Reading: Equity and Dilution

    Read a 277-word text about Equity and Dilution

  2. Vocabulary8 min

    Vocabulary: Equity and Dilution Vocabulary

    8 items

  3. Reading10 min

    Reading: A model dilution walkthrough

    Read a 286-word text about A model dilution walkthrough

  4. Practice7 min

    Practice: Practice: Explaining Dilution

    Word-ordering exercise, 5 items

  5. Practice7 min

    Practice: Practice: dilution in numbers

    Gap-fill exercise, 6 items

  6. Practice7 min

    Practice: Run the numbers

    Matching exercise, 6 items

  7. Dialogue10 min

    Dialogue: Role Play: Explaining Dilution Before a Funding Round

    Role-play: You're sitting down with your co-founder to explain how the upcoming funding round will affect your ownership stakes and what dilution really means in practice. (4 lines)

  8. Discussion10 min

    Discussion: Your mission: the dilution talk

    3 discussion questions

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Target vocabulary

In a Tuton account these words become your student's vocabulary deck, so they come back in practice between lessons.

equitydilutionproportionallycompoundsSAFEsoption poolcapital efficiencydown round

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