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Ask HN: What's the typical range of equity a VC will request for seed funding?

7 pointsby ashamedlionover 14 years ago
I'm just curious, for seed money, how much equity do VCs usually ask for? I know YCombinator is 2-10%, but is this typical in the industry?

2 comments

shafqatover 14 years ago
20-30% fully diluted is typical if you are taking money from a VC in a seed or A round. There are always exceptions (i.e. you are a "hot" company). In fact, a lot of VCs care less about valuations and are more focused on their percentage ownership after the financing.<p>Fully diluted means after they carve out an option pool from your pre-money. Venture Hacks has a great post about the Option Pool Shuffle that you should read if you're not familiar with it.
ig1over 14 years ago
VCs generally look for a 10x return on investment and will take whatever percentage of equity they think will get them that return.