In startup fundraising dilution is a key issue for founders.

At each stage of funding investors will demand a certain amount of equity.

Here’s how much each round will cost a startup in equity:

Pre-seed

Typically funded by family and friends the cost of funding is 5 to 10%.

Seed

Angels take 5 to 10% while venture capitalists take 10 to 25%.

Seed+

Most founders will need additional funding to carry the business forward.  

Seed+ rounds cost the same amount as seed rounds.

Series A

Venture capital investors will seek 15 to 25% of equity at this stage.

Series B

Later-stage VCs look for 10% to 20% of the equity at this point.

Series C and following.

Growth equity investors look for 10% to 15% at this level.

Consider the impact of dilution on your startup from fundraising. 

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
________________________________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/
For Feedback please contact info@tencapital.group
Please follow, share, and leave a review.
Music courtesy of Bensound.

Copyright (c) 2025, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.