Question: How Much Equity Should I Give Up In Seed Round?

If you can manage to give up as little as 10% of your company in your seed round, that is wonderful, but most rounds will require up to 20% dilution and you should try to avoid more than 25%.

How much equity do you give in seed round?

Much depends on the valuation and other variables, which this question asks to put aside. The general rule of thumb is: For seed rounds, expect anywhere from 10% to 25%as a normal range. For Series A, expect 25% to 50%on average.

How much equity do you need for angel round?

The typical angel investment is $25,000 to $100,000 a company, but can go higher.

How long should a seed round last?

For seed startups, the range is often 12-18 months. Breakdown is roughly team of 4 to 6 making $80K each plus all the costs of servers, offices, furniture, lawyers, etc., etc. Should be 2 years in most cases but startups tend to spend quite a bit and run out of runway significantly faster than they should these days.

What percentage should you give an investor?

Angel investors typically want from 20 to 25 percent return on the money they invest in your company. Venture capitalists may take even more; if the product is still in development, for example, an investor may want 40 percent of the business to compensate for the high risk it is taking.