The only thing start up companies have to raise capital is stock.
They don't have a history of company business successes to take to a bank for funding. No assets, receivables or margins.
In order to execute any business plan you need cash. If one wants their favorite company to success, they should want them to have cash.
So if they sell shares, give them for funding, or offer warrants, options or conversion rights to raise cash, that is good!
Dilution scares, just another term penny players use incorrectly. Dilution can hurt exchange stocks perceived value, not their real value, but not wanting or expecting it, in startup pennyland, is just wrong!
Why would you put your money into a story belief and not want them to raise the cash needed to succeed? Besides, if any penny does grow enough to up list off the OTC, 95% of them do reverse splits to meet up listing requirements anyway.
The main thing wrong about dilution hurting a startup is, the only thing dilution effects is the EPS. (earnings per share) And startups DON"T have earnings, so they don't have an EPS and dilution actually does not effect anything!!!
Pennyland O/S is not relevant, if it helps the company raise the capital needed to succeed. Just the basics of crawling to walking to running for a company. Feed them to grow, put them on a diet to fit in and balance intake for the long hall.
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