So, you’ve got a brilliant startup idea, maybe even a co-founder or two, and now you’re staring at the daunting task of figuring out how to split equity. Who gets what? How do you keep employees incentivized? And what happens if someone leaves?

Welcome to Gildre’s Startup Equity 101—where we break down the essentials in a way that makes sense.

If you’re a startup founder preparing to fundraise, you’ve probably heard the term “equity dilution” thrown around by investors, advisors, and fellow entrepreneurs. But what does it actually mean for you and the long-term success of your company? More importantly, how much equity should you realistically give away at each fundraising round?