Based in Sydney, Australia, Foundry is a blog by Rebecca Thao. Her posts explore modern architecture through photos and quotes by influential architects, engineers, and artists.

What Is the Usual Percentage of Shares That Go to Seed, Series A, and Series B Rounds?

Context specifics will always drive a more accurate answer. Much depends on the valuation and other variables, which this question asks to put aside.  

The general rule of thumb is:

For seed rounds, expect anywhere from 10% to 25% as a normal range. 

For Series A,  expect 25% to 50% on average.

For Series B, expect roughly 33%

As you advance to the next funding round, you should realistically expect further dilution. Founders start with 100% ownership. Seed rounds - the earliest stage of funding, usually from family and angel investors - typically dilute founders’ ownership by an average of 15%. 

By the time you reach the Series A stage, you need to be prepared for further dilution. Series A investors are usually funders who provide venture capital for emerging companies. Since their funding typically exceeds $2 million, their percentage of ownership can be as high as 50%.

If you get to the Series B round, expect a dramatically different mindset from earlier funders. Whereas Series A and seed investors believe in your vision and have bought into the prospects of your company, those in Series B want to see that you’ve successfully progressed and satisfied important milestones. They typically see about 33% ownership, which will dilute all previous ownership percentages. 

You also need to reserve a percentage for the option pool - usually, about 10% to 15%.

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