November 23: How much equity do startups sell in Series A?
Startups require different amounts of capital to get started and some sectors hold more value for investors than others.
Source: Carta
Published: September 2021
How much equity do startups sell in Series A?
The amount of equity a company needs to relinquish while raising a Series A round varies considerably by industry.Â
Startups require different amounts of capital to get started and some sectors hold more value for investors than others, both of which can influence the percent of equity a company needs to sell to get started.Â
For example, according to data from Carta, an equity management firm, the median biotech startup sells just over 31% of company equity during Series A—nearly twice as much as the median fintech company.
Hi Danny, Thanks for these small yet insightful, byte-sized facts! For me, not a day goes by without reading fact of the day 1! My $0.02 - A small note on different types of start up financing (Debt and Equity) would have preceded this one nicely! Looking forward for more learning :)