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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Founder Dilution
Description: Founder Dilution Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Founders raising funding incur dilution. Their ownership stake goes down as they raise more funding. Founders start with 100% ownership. Each round of funding dilutes them by 25% or more. On average, founders own 60% after the pre-seed and seed rounds. After a Series A, they own 45%. After a Series B, they own 26%. After a Series C, they own 25% After a Series D, they own 11% There are often two to three founders in a startup, so they split this amount. Investors...