Founder Perspective
How much equity should I give up in my seed round?
Most seed rounds involve giving up 15–25% of the company on a fully diluted basis. Giving up too little makes the round not worth the investor's time; too much leaves founders over-diluted before Series A.
The amount of equity you give up in a seed round is a function of valuation, raise size, and your specific situation. There are no universal rules, but there are norms.
**Typical range:** 10–25% for seed rounds. The sweet spot is often 15–20%.
**How it's calculated:** If you raise $2M at an $8M pre-money valuation, your post-money is $10M and the investor owns 20%.
**Why it matters:** Seed dilution compounds. If you give up 20% at seed, 20% at Series A, and 15% at Series B, founders are looking at roughly 35–45% combined dilution before accounting for option pool refreshes. Starting too diluted at seed leaves founders with uncomfortably low ownership by the time the company is worth something.
**What investors need:** Institutional seed investors typically want 5–15% ownership per investor to justify their time and ensure the deal matters to their portfolio. Giving up 8% to a check-writing VC might not be worth the relationship if they won't do meaningful work for you.
**Valuation benchmark:** Seed valuations in 2023–2024 ranged roughly from $5–20M pre-money, with the median around $8–12M for companies with some traction. Pre-traction/pre-revenue ideas tend to price lower.
The right answer is: raise what you need to hit your next meaningful milestone, at a valuation that doesn't make your Series A story impossible, while keeping enough ownership to stay motivated and competitive on future option grants.