What’s the best way to sell the right amount of equity in your fundraising round?

Jason Lemkin (Managing Director at Storm Ventures, SaaStr.com)
Jason M. Lemkin’s answer to For a new startup, what would be the ‘acceptable’ equity percentage given to VC (Series A financing)? – Quora

Typically, Seed Stage VCs will want to write smaller checks to achieve at least a 10% target ownership. Sometimes more. If you need more money, they’ll often want to bring in a second Seed Fund to buy a second 10%. Typically, Larger Funds will want to own as much as 25%. Themselves. And they’ll write a larger check to get it, and sometimes, pay a higher per share price.

What’s the best way to sell the right amount of equity in your fundraising round?

Dharmesh Shah (Co-founder and CTO of HubSpot)
Happy Birthday HubSpot! 9 Lessons From Our First 9 Years

Don’t minimize dilution, maximize impact. If you go out and raise outside funding, resist the temptation to worry too much about valuation (and minimizing dilution). In the grand scheme of things, as long as you’re getting a fair deal, marginal differences in dilution won’t matter. What will matter more is the degree to which you can have an impact (however you measure that). You’re probably going to be happier owning 5% of something great tha… (read more)

What’s the best way to sell the right amount of equity in your fundraising round?

Naval Ravikant (Founder, CEO & Co – Maintainer at AngelList)
“The Anatomy of a Fundable Startup”, by Naval Ravikant (Founder, AngelList) on Vimeo

My rule of thumb is 20% for a seed round. Anything more than that and people are going to be worried [about if] you are going to be incented after 2 or three more rounds of financing.

What’s the best way to sell the right amount of equity in your fundraising round?

Mark Suster (Managing Partner at Upfront Ventures)
Founder Showcase – Mark Suster Keynote on Vimeo

VCs want meaningful ownership. The fairway for a round of venture capital is 25-33% of your company. If you’re a better negotiator, if you’re hotter, if you have more people interested you can get it down to 18%-22%.

What’s the best way to sell the right amount of equity in your fundraising round?

Babak Nivi (Co-founder of AngelList and Venture Hacks. Previously, he was an entrepreneur-in-residence at Bessemer Venture Partners and Atlas Venture.)
The Option Pool Shuffle – Venture Hacks

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle

What’s the best way to sell the right amount of equity in your fundraising round?

Sam Altman (President at Y Combinator)
Fundraising Advice for YC Companies – Y Combinator Posthaven

You should aim to sell only about 20% of the company in your seed round (though 25% is ok if you’re raising a ‘large’–say more than $2. 5 million–seed round). You should raise enough money to get to your next significant milestone.

What’s the best way to distribute company equity?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Valuation and Option Pool – AVC

One of the more contentious things in the negotiation between an entrepreneur and a VC over a financing, particularly an early stage financing, is the inclusion of an option pool in the pre-money valuation. As my friend Mark Pincus likes to say, “it’s just another way to lower the price”.