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The article mentions $25-$100k for 1-2% is sketchy. With a startup, what percentage of ownership should the co-founders expect to give up at the seed stage? At
by Shenglong 15y ago
The article mentions $25-$100k for 1-2% is sketchy. With a startup, what percentage of ownership should the co-founders expect to give up at the seed stage? At other stages? Any insight would be great.
- StavrosK 15y agoThat's the exact thing I wanted to ask. 2% for 100k is a 5M valuation, that's pretty good for most early-stage startups. Why would this vest over time? It sounds like a clear-cut "quid pro quo" to me...
- StavrosK 15y agoI hijacked your question a bit, so I'll reiterate adw's answer below: He means 1-2% extra for finding the investors.
- Shenglong 15y agoNo worries. I'm still curious as to how much someone should expect to give up, though.
- StavrosK 15y agoWell, that depends solely on you and your valuation, which, in turn, depends on many things. As I understand it, it mostly depends on your ability to convince investors that you have a good idea that you can execute well.
- praptak 15y agoI wouldn't fix too much on particular numbers. If the increased probability of success (you take the investment for a reason, right?) makes up for the lesser share then the offer is good. I believe this piece of advice comes from Paul Graham. Edit: Right, here it is: http://paulgraham.com/equity.html http://paulgraham.com/equity.html