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Regarding Equity share between investor and founder seed funding


10-Oct-2023 (In Startup Law)
If i am going for a seed funding for my business what must be the percentage of stake i should give to the investor if he is a seed investor or how much the percentage be diluted when next round of funding occurs ..
Answers (1)

Answer #1
637 votes
The dilution of stake in favour of the investor in case of fund raising depends upon the valuation of the venture at the time of funding and amount of money that the investor intends to invest. This is a pure commercial issue which needs to be negotiated with between the investor and promoters. Any dilution should also factor in the subsequent fund raising rounds.

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