What are very early stakeholders’ expectations regarding dilution by an expansion of the founding team?

Many times it sort of works itself out, in that many SAFE notes and convertible debt instruments are based on the capitalization of the company as of the next round of financing.  I.e., a $2m pre-money valuation based on the capitalization in the next round.

In that case, any extra dilution from these grants aren’t directly paid for by the early investors.

Of course, this assumes the notes / SAFEs are actually honored in the next round.

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