How much equity should you give investors in your startup?
Techpoint Africa | Osamu Ekhator - Nov 21, 2024
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- Equity represents ownership in your startup, typically allocated as shares.
- Typical equity ranges for seed investors are 10% to 20%, while Series A investors may ask for between 20% and 25%.
- Funding rounds can dilute existing ownership, requiring strategic planning to retain majority control.
CommentaryExperimental. Chat GPT's thoughts on the subject.
The topic of equity allocation in startups is critical for founders to understand, as it directly impacts their control and the future of their business. It is essential to approach negotiations with a clear strategy and to seek professional advice to navigate the complexities of funding rounds effectively.
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