How Much Equity Should You Give Away? (And Why Dragons Want Way Too Much)

You’re not on Dragons’ Den. Don’t give away half your company.

Way too many first-time founders over-dilute early—and it haunts them later. Whether it’s an investor asking for 40% at Pre-Seed or a hyped Seed round that wipes out your future option pool, equity mistakes compound fast.

If you’ve ever thought, “Is this normal?”—here’s what actually is.

🧾 The Benchmarks That Actually Matter:

✅ Pre-Seed: Raise $250K–$1M → Give away 10–20%
✅ Seed: Raise $500K–$3M → Give away 15–25%
✅ Series A: Raise $3M–$10M → Give away 15–20%

Stick to these ranges and you’re golden. Drift too far outside, and you risk handing over your company before the real growth even begins.

Here’s Why It Matters:

• 🚩 Messy cap tables scare VCs. They want to know you’ve got skin in the game long-term.

• 🧲 Top talent wants equity too. Blow it early and you’ll have nothing left to offer.

• 🎢 Future rounds get harder. If you’re too diluted, your next raise is already on shaky ground.

The Shark Tank Myth:

You’ve seen it. A founder asks for $100K and gets offered a deal… for 40% of their company.

That’s entertainment—not a funding playbook.

In the wild? Any investor asking for more than 25% at Pre-Seed is either:

• A) not a startup investor, or

• B) setting you up for a cap table horror story.

You don’t need to say yes to the first cheque. Especially if it costs you long-term control.

What We’re Seeing on the Ground:

Founders are getting sharper. They’re raising with clearer traction, pushing back on bad terms, and keeping more equity—without over-inflating valuations.

The smart ones? They’re treating dilution like a shark in shallow water: stay alert, stay calm, and don’t go tossing equity chum around for no reason.

A Quick Litmus Test for Any Raise:

✅ Do you still own >80% after Pre-Seed?
✅ Will you still have >50% after Series A?
✅ Can you keep a 10–15% option pool for hires?

If not—you’re probably giving away too much, too soon.

Final Word:

You don’t need a perfect cap table. But you do need a smart one.

A great raise isn’t just about landing capital—it’s about staying in the driver’s seat long enough to build something legendary.

Own your raise. Own your outcome.