3 ms·
How much equity is one expected to be giving up in these early rounds (angel, pre-seed, seed)? I was speaking to someone yesterday and they had mentioned 20% pe
by c_o_n_v_e_x 5y ago
How much equity is one expected to be giving up in these early rounds (angel, pre-seed, seed)? I was speaking to someone yesterday and they had mentioned 20% per round is a rule of thumb. This in Asia so not sure if the rule of thumb is correct and or whether it's different in other geos.
- enra 5y agoDepends, but generally for proper seed or A rounds 20% dilution is common but for pre-seed I would do less, 5-15%. Also to note that it doesn’t mean you give out 20% ownership each round but each round dilutes existing shareholders by 20%. All depends how much you actually need to raise and what kind of valuation you are able to get.