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How equity works - is there a difference between rescaling equity and fixed-equity?

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after a colleague of mine left the company, I'd like to provide him/er with an equity for the work done. I'd like this equity to be dynamic, meaning that whenever a new member or investor enters, his/er equity rescales proportionally.

As an example:

Initial Equity of "Person A": 5%New investor enters and takes: 20%Final Equity of "Person A": 4%

Is it possible?

P.S. To be more clear, my doubt is that there may be some options in the business sector to get a fixed-equity over time (independently on diluition): for example, in case an investor enters, s/he may say: "I want 20% forever". Is this option real, or am I wrong? So, my question is whether I have to make clear this rescaling condition or it is just a default behaviour.


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