equity, investors, funding, founder, fundraisingHow much amount of equity do the founders typically retain after a series A round of VC funding ? According to wikipedia up to 30% of equity can be given up by the time the company reaches the first major round of funding. Just wanted to know how much is the typical number and how can founders avoid giving too much away (or retain disproportionate voting rights).
Its pretty common to give away 30% to seed and pre-seed investors. If you want to avoid “giving away” so much equity, you should build a business that has positive cash-flow from an early stage and does not need much equity.
If you need capital to build your business its only fair to give away part of it to the investors. They not only put their money in a tremendous risk but also often help you build your startup.
Disproportionate voting rights are rare. If you do a good job, investors won’t stand in your way.
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