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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Equity Distribution Over Funding Rounds
Description: Equity Distribution Over Funding Rounds Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. As the startup raises funding the founder's and employees' ownership stake will fall and the investor's stake will rise. This is due to the fact that more investors are added to the cap table over each round of funding. Both founders and employees undergo dilution throughout this process. After a seed round the founders typically own 65% of the company, employees own 15%, and investors own 20%. After a Series A round the founders typically own 45%, employees own 12%, a...