A great idea is 1% of the work. Execution is the other 99%. In this course, we’ll teach you how to conduct market analysis, create an MVP and pivot (if needed), launch your business, survey customers, iterate your product/service based on feedback, and gain traction quickly.
A.I. Engineer / Entrepreneur / Founder & CEO @ Umazed / Kodo Startups
September 21st, 2016
It depends. Actually, in my experience, 20-25% is the norm. Here is a typical example. X VC company evaluates or values your company at 8 million pre. Pre meaning before they give you money in exchange for equity/shares/preferred stalk, they value you it based on their research. Then let's say they give you 2 million in exchange for equity/shares, then out of thin air, your company issues them those shares. So Post evaluation your company is worth 10 million. Basic math. 8 pre 10 post 2 million in seed funding, in this example you give up 20% equity in exchange for 2 million. That's as basic as an explanation as it gets. There is an option pool, but you can argue to keep it between 10-15% if you or a team member is going to be the CEO/CTO or C level.