News for hackers. Stuff that matters.

A comment on Seed investors: the good, the bad and the ugly, from a founder who’s been there. Parent comment

Re:Seed investors: the good, the bad and the ugly, from a fo... by c_o_n_v_e_x on Wednesday November 10, 2021 @11:38PM (#29184468)
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.
[ Parent | on HN ]
Re:Seed investors: the good, the bad and the ugly, from a fo... by enra on Wednesday November 10, 2021 @11:48PM (#29184508)
Depends, 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.

[ Parent | on HN ]