How much of their companies are founders selling to investors at each venture stage?
No fixed answer to this (very common) question - but the overall trend in SaaS companies is positive for the founding team.
When we look at primary priced rounds only, we see a clear pattern of founders selling less equity to investors over the years. In 2020, the median priced seed round saw 21.2% of the business sold to investors - whereas an identical round in 2023 settled at 20.7% sold.
Surprising! So what's going on?
Dilution declined in the boom years as deals got more competitive and VCs lost some negotiating leverage.
As the market cooled, dilution declines flattened but in most cases have not reversed (save for the late-stage, which has been its own whole thing lately).
Dilution is happening more often outside of primary rounds. Bridges, extensions, convertible financings - these are all taking slices of the company pie but don't show up in the primary round analysis.
Yes - fewer deals are happening. But those that are completed seem to be fair to founders, especially at the earliest stages.
Subscribe here if you're new to the Data Minute. Forwarding encouraged!
Peter Walker
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
