Ask HN: How much equity can a startup give to investors in a seed round?

1 points by throwawayawaya 10y ago ↗ HN

I run a b2b startup in a small country and last year we did a modest seed round for 30% of the company. Now we are profitable and basically have a natural monopoly in our small home country and want to raise a follow on seed round to prove that our model can work abroad. If we have to give up another 20% equity to fund this expansion, will there still be an appetite to take part in a potential A round later this year? Or will 50% equity share for founders pre A round be viewed as a reason not to invest for VCs?

Thanks for inputs, feedback and stories...

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rt2016 10y ago ↗

I have limited experience compared to many people on here, but 30% for a seed round seems higher than average. It might make more sense to go straight to a series A where you will likely get more money than a seed round (expanding abroad is always more expensive than you think). I don't know which county you're in, but many (if not most) U.S. investors will be wary of investing in a company where 50% has already been given away, making it difficult to raise more money later. Exceptions are made if you're doing incredibly well and they're guaranteed to make money, but on average it's not something they like.