I'll see if I can dig up some better #s. But a few comments... --to get that leverage you usually have to meet some milestones (get some traction), and that is

I'll see if I can dig up some better #s. But a few comments... --to get that leverage you usually have to meet some milestones (get some traction), and that is usually done from a seed round where you already gave up some dilution. I think it can be increasingly done via YC (6%) or even by one-self, but there are still certainly a lot of seed -> series A --the eventual dilution # also includes the option pool (another 20%). Like I said in the post, not all of this may be allocated at the time of acquisition, but it may be and it does sit out there on the cap table. --I assume you and your friends have raised from relatively well-known top tier VCs. There are tons of VC firms we've never heard of, so when you look across everything I think the #s may look different. WSGR is of course seeing top-tier deals. --This is mainly for first time entrepreneurs, who for many reasons are often in a position of less leverage. Of course, as I said traction trumps everything, so I think you should go for that first. It's the quickest path to exit and the least dilution.