Equity & dilution
How much equity should founders give up?
Most priced rounds sell 15–25% of the company, and founders who add a pool refresh and converting SAFEs on top usually give up rather more than the headline. The right number is not a percentage; it is whatever raises enough capital to reach the milestones that justify the next round, at the best price you can defend.
Prepared by Perseids · Published · Updated
The usual shape
| Stage | Typical sold to new investors | Typical additional pool |
|---|---|---|
| Pre-seed / SAFEs | 5–15% cumulative on conversion | 0–10% |
| Seed | 15–25% | 10% target post-round |
| Series A | 15–25% | Refresh to 10–15% |
| Series B | 12–20% | Refresh as needed |
Pre-seed / SAFEs
- Typical sold to new investors
- 5–15% cumulative on conversion
- Typical additional pool
- 0–10%
Seed
- Typical sold to new investors
- 15–25%
- Typical additional pool
- 10% target post-round
Series A
- Typical sold to new investors
- 15–25%
- Typical additional pool
- Refresh to 10–15%
Series B
- Typical sold to new investors
- 12–20%
- Typical additional pool
- Refresh as needed
Ranges vary by sector, geography and market conditions. Treat them as a sanity check, not a target: a company raising outside these bands may be doing something entirely rational.
What should actually drive the decision
- The capital needed to hit the next set of milestones, plus a margin for slippage.
- The valuation you can defend with evidence rather than narrative.
- How much of the pool is genuinely required by the hiring plan.
- How many convertibles are already outstanding and what they take on conversion.
- Whether you need this investor specifically, which changes your leverage on terms.
The trade-off, plainly
Raising more at the same valuation buys runway with ownership. Raising less preserves ownership but shortens the window in which the milestones must land, and a bridge on worse terms costs more than the ownership you saved. Model both before deciding.
Prepared by Perseids for general information. It is not legal, tax or investment advice — confirm your specific situation with your advisers.
Frequently asked questions
- Is giving up more than 25% in one round a mistake?
- Not automatically. It is a warning to check the alternatives: a smaller raise, a higher-priced later round, or fewer non-essential hires in the pool. Repeated 30% rounds are what leave founders with little by Series B.
- How much should co-founders take relative to each other?
- That is a founding-split question rather than a fundraising one, and it should be settled with vesting in place before outside money arrives.
Put this into practice with Perseids.
Model your ownership path