Questions

I thought 5% to 7% of equity is more than enough for an investor in a startup that has the potential to be the next Facebook, Amazon or Google? I was reading earlier where investors want 10% to 15%? That seems high. When you look at what other VC’s have asked for with companies such as Facebook, Google, etc

Typical pre-seed (100-500k) is 5-15%
Seed (500k-2M) is up to 25%
And over depends.

The "potential of the next FB...." is just that, a potential. Don't fight over equity early but make sure you never give up more than 15%, don't offer board seats too early and no "right of first refusal" or "right of next round lead"


Answered 7 years ago

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