Real Dilution Per Venture Round From 10000 Primary Rounds

Real dilution by venture round - data from 10,000+ primary rounds since 2021.

The primary round note is important, as there are lots of bridge rounds, extensions, and all sorts of creative financing going on.

But in the standard venture alphabet round, here's how much founders are selling to investors:

𝗦𝗲𝗲𝗱

• 20.1% median in 2024

• Round activity down about 20% from last year so far.

𝗦𝗲𝗿𝗶𝗲𝘀 𝗔

• 20.0% median today

• Right on 20% for the last few years. Volume 5% up.

𝗦𝗲𝗿𝗶𝗲𝘀 𝗕

• 15% median now

• Reduced from 2023, in line with prior years. Volume 11% up

𝗦𝗲𝗿𝗶𝗲𝘀 𝗖

• 11.4% median

• Ticked down from last year, volume of rounds up 8%

𝗦𝗲𝗿𝗶𝗲𝘀 𝗗

• 9.7% median in 2024

• Under 10% for the first time since 2021 (competitive rounds when they happen)

If you're looking for how much founders are selling through SAFEs and Convertible Notes in a pre-seed, the range is quite wide. Anywhere from 6% to 15% depending on the size of the pre-seed round (and the relative demand for the founding team).

So - that's a lot of pie being handed out! Not to mention the employee option pool, which starts around 10% and grows to 20% or so by the time a Series D is in play.

Important to note that no company really takes the median dilution in every round. Each fundraising journey is peculiar - founders may sell 30% in a Series A, 5% in a Series B, and everywhere in between. No "right" way to do this.

Good luck closing deals before the holidays!

#startups #dilution #fundraising #founders