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How much equity do founders give investors in each venture round?

Authors

"The first column in the chart shows the median percentage dilution for each venture round. In a typical Seed round, the founders give up 20.5% of the company to their seed investors.

Some key takeaways:

• Series A and Series B seem to have the widest distribution - rounds raised in these two stages are all over the place regarding dilution.

• Seed rounds cluster around 20% - but you'll also need to consider the dilution from any SAFE or convertible notes raised previously (which is not visualized below).

• These bubbles refer to primary rounds only (so your initial Series A, for instance). If you go back to current investors and raise a bridge round, the dilution will be substantially different.

Obviously, each round is a unique negotiation between the founders and investors. Founders want to hold on to a significant stake in the company they've created - and investors need a certain allocation in order for their fund economics to make sense."

How much equity do founders give investors in each venture round?

Author

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