as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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ownership in company and rounds of investment
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say the company has created 500 shares [or whatever number]. you have 10 shares [equivalent of 2%]. now when new capital is needed, generally more shares are created. say they create 100 more shares and sell it to venture capital to raise funds. after this happens; total shares: 500+100 = 600 you own: 10 shares your ownership % = 1.66% down from 2% like wise for other older shareholder. the new venture guy gets 16.66% of ownership.   more funds would mean more growth and overall the value of your 10 shares would be more depending on the valuation.
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