Before diving into the specifics, let’s connect—I’ll be in London from February 4–6th to discuss equity strategies, valuations, and the nuances of raising capital and M&A. Book a time to chat over coffee/tea.
Schedule an In-Person Meeting in London (Feb 4–6)
According to the 2025 Founder Ownership Report from Carta and our own experiences, founder ownership evolves dramatically as companies raise capital. At the seed stage, the median founding team retains about 56.2% ownership. By Series A, this drops to 36.1%, and by Series B, founders often hold 23% or less.
This dilution can feel like a necessary evil—but understanding the trade-offs and planning strategically can help founders retain more equity while ensuring the business thrives.
Equity represents more than ownership; it’s a reflection of your company’s future value. Giving away too much too soon can erode your influence, while retaining too much might scare off potential investors who expect a robust employee pool or significant equity upside for themselves.
Here’s what to consider:
Timing your raise and understanding your valuation are central to navigating these equity decisions. As highlighted in previous discussions:
These steps aren’t just about getting a good deal today—they position your business for long-term success.
Investors increasingly use platforms like Carta, PitchBook and prior transactions for benchmark analysis. Ensure your equity split, burn rate, and growth metrics align with your sector’s top quartile to stand out. For example, startups offering 20% equity for seed funding typically aim for valuations exceeding $10 million, ensuring dilution doesn’t surpass sector norms.
Deciding how much equity to give often boils down to a few key considerations:
Raising capital is one of the most consequential decisions for any founder. It’s not just about what you give up but what you gain: the partners, resources, and opportunities that propel your business forward. Here is the source of the Carta study: https://carta.com/data/founder-ownership-full-report/
Let’s discuss your strategy to raise capital without compromising your future. Book a call today to ensure your equity decisions set you up for success.
