Not only diluted but probably stacked well below the preferred share owners. Dilution is such a misunderstood point with early stage founders/employees, more so because the concept of preferred shares and how they impact an owned % in a liquidation event is not understood at all. I've had so many conversations with startups, founders and early stage employees over the recent years explaining why their X% common share ownership is only a fraction after the preferred shareholders take money of the table.