How much private equity does a venture capital firm claim?
I would like to know how much private equity does an individual or firm that is going to finance through venture capital will take in my company?
Investing - 1 Answers - 2010-05-25 17:00:01

Best Answer
You will usually give up around 35-45% of your company equity (stock) for a first or "A" round. Most often, a company will need another round or two (or three) to get to liquidity, which typically takes the form of either an IPO (public stock offering) or a buyout by a larger company. Each round, you will give up more equity that is negotiable depending on how good your business opportunity is, progress since the last round and the interest from other VCs.

All Answers
Answer 1
You will usually give up around 35-45% of your company equity (stock) for a first or "A" round. Most often, a company will need another round or two (or three) to get to liquidity, which typically takes the form of either an IPO (public stock offering) or a buyout by a larger company. Each round, you will give up more equity that is negotiable depending on how good your business opportunity is, progress since the last round and the interest from other VCs.
2010-05-26 16:05:15