Typical dilution per funding round...
Founders should keep benchmarks!
Interesting article about the typical dilution in the consecutive stages of start-up funding from pre-seed through seed up to series A,B and C.
Founders should take care to keep dilution within typical established benchmarks at each funding round, as many VC investors won't invest in companies having been diluted below such limits.
The article compares typical figures in the different rounds for Europe and USA.
In Europe for example, the typical seed round ranges between €500k and €2.0 million with median pre-money valuations between €4 and €8 million, whereas in the USA the respective ranges are $500k to $ 3million for the seed round and $10 to $12 million for the valuation, depending on the sector of course. VC firms would like to get a 10%-20% share in this round.
By the way ... beyond start-up funding, minority shareholdings can be an attractive option also for well established small and medium sized companies to strengthen the capital basis and thus enable, support and accelerate growth, international expansion, strategic innovation projects and M&A activities ... Reach out for further information!
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