You Gave Away What at Pre-Seed?

Hi ,

Startup fundraising isn’t like Dragons’ Den.

But way too many first-time founders treat it like it is — giving up 40% at Pre-Seed just to land a cheque. Or over-raising at Seed, only to wipe out their option pool before they’ve even hired the team.

Equity mistakes compound fast. And once they do, it’s hard to recover.

If you’ve ever wondered, “what’s 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 off investors. 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: staying alert, staying calm, and not tossing equity chum to land the big one.

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.

🚀 Founder Tip of the Week:

If your lead investor is asking for more than 25% at Pre-Seed or Seed… run. Or negotiate like your future depends on it. (Because it kinda does.)

🔍 What We’re Seeing:

In 2024, founders who nailed their prep raised later, locked in better valuations, and gave away less equity. Turns out, a little strategy goes a long way.

📈 Fast Fundraising Fact:

Giving away more than 25% in your first round puts you in the bottom quartile for long-term founder ownership.

🧠 Bonus Insight:

Valuation matters—but equity given matters more. A juicy headline valuation looks great, until you realise you’ve sold off too much to get it. That’s not leverage, that’s a liability.

🔥 Ready to raise smarter? Sign up here and take your funding journey to the next level.

Here’s to raising capital on your terms.

Amy and the Team @ Raaise

Powered by thousands of data-driven insights, our AI-enabled platform is designed to help founders run faster, more efficient and more cost effective capital raises by:

🤝 Matching startups with aligned investors—so you don’t waste time on the wrong conversations.
💥 Enabling direct connections through the right channels—getting your pitch in front of decision-makers, faster.
🏁 Streamlining the entire fundraising process—from first contact to due diligence—so you can spend less time chasing and more time closing.

🔥 If you’re ready to raise smarter, sign up here and take your funding journey to the next level.