Startup founders sell 20% at the seed stage, right?
Broadly speaking, yes. 20% is the median dilution for founders during their seed rounds (talking US companies here, sorry international founders).
But that 20% mark overall hides some significant differences by industry.
A Biotech company typically sees 25% dilution at this stage, as do Semiconductor startups, while your median Edtech may only part with 17%.
Good for founders to have a general sense of how their industry operates so they aren't surprised by investor requests at the next fundraising meeting.
You'll note that valuation (in the green bars below) is kinda all over the place by industry. Some low dilution sectors come along with low valuations (which implies smaller rounds), but it's not a perfect fit down the line.
All data below for US startups raising their seed rounds in 2024. Share with a fundraising founder!
#startups #fundraising #venturecapital #dilution #seedstage
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