How much equity should I give to investors?

A

Administrator

10:56 AM on October 10, 2022

While the amount is completely up to you, the general rule of thumb to follow is that the equity amount must be a function of the following:
 

  • Valuation
  • Business stage
  • Need for capital


Given this, we strongly discourage relinquishing over 33% of ownership to investors, especially for early stage fundraisers. Ceding majority ownership may be unfavorably viewed by potential investors as an unloading of responsibility and can spell difficulty in approving some corporate actions.

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