Question 1

How much equity do founders typically give up in a seed round?

Accepted Answer

The 2025 median was 13.8 percent of equity sold to investors (Rebel Fund). The full effective dilution is often higher, 18 to 28 percent, once option pool top-ups are factored in. Pool top-ups are placed pre-money, which means founders bear all that pool dilution before investors take their share.

Question 2

Do founders typically own less than 50% after Series A?

Accepted Answer

Yes. After Series A, the median founding team retains roughly 60 to 70 percent collectively, but each individual founder is below 35 percent in most cases (after assuming a roughly even split among 2-3 founders). By Series B, individual founders are usually below 25 percent. By Series C, below 18 percent.

Question 3

Why is dilution multiplicative not additive?

Accepted Answer

Each round dilutes what you have at the time, not what you started with. If you retain 80 percent across 3 rounds, you end with 80 x 80 x 80 = 51 percent, not 60 percent. The compounding accelerates if early rounds are bigger. Use the multi-round calculator on the homepage to see your specific path.

Question 4

Can I avoid Series A dilution by raising more in seed?

Accepted Answer

Bigger seed rounds raise more dilution at seed but can sometimes skip Series A entirely if traction supports it. The math depends on whether the bigger seed lets you reach metrics that justify a higher Series A pre-money. Often the answer is no: bigger seed rounds dilute you more in absolute terms because the company is less valuable when you raise.

Question 5

What is the cumulative dilution from seed through Series C?

Accepted Answer

A typical founder retains roughly 35 to 50 percent of the company collectively (across founders) after Series C, falling to 10 to 25 percent by IPO. The exact path depends on round-by-round leverage, pool top-ups, SAFE conversions, and any down rounds with anti-dilution kicking in.

Question 6

What happens to my equity if I leave before Series A?

Accepted Answer

Your unvested shares are forfeited and return to the company. Vested shares stay yours. If the company has a four-year vest and you leave at month 18, you keep 37.5% of your founding stake (1 year of cliff plus 6 months of monthly vesting). Whether you can exercise vested options is a separate question with its own deadline.

How much equity you give up at each round

Founder ownership decay (median path)

Pre-seed / Friends & Family

Seed

Series A

Series B

Series C

Series D and beyond

Five rounds at 18% each leaves you at 37%

Funding round FAQ