Dilution sucks. Just ask Angie.

When Angie’s List IPOs today at a valuation near $667 million, Angie Hicks will literally see her name in lights.

She will not, however, walk away with much of that $667 million staked to her name.

Angie’s List’s cofounder and current CMO owns just 1.8% of the company. In other words they have been working for the VCs. Sure her stake is worth about $12 million but that is nothing considering all the risk she has taken. VCs and investors own 98.2% of the company.

The New York Times’s Steven Davidoff has a whole column on how founders should be careful to hang on to equity. You should read it >>