So for years we’ve all advised founders about some rough numbers for dilution for each traditional venture round:

  • 20% dilution in a Seed round, sometimes less if you don’t need much money, sometimes more if you do and it’s early
  • 20% dilution in an A round, sometimes a smidge more.
  • 15% dilution in a B round, sometimes a smidge more
  • 10%-15% dilution in a C round, depending on how much you need the money, and how much
  • 10% dilution in a D round, again, depending on how much you need the money

And pre-seed rounds really have been all over the place.

But I haven’t seen this all quantified.   Carta though just did an amazing job of it:

What they saw across 1,200 recent rounds is pretty much those rules quantified.  You can see the averages and core ranges above.

It’s pretty helpful data.

And a reminder that there are benefits to being efficient, and not just chasing VC rounds.  That dilution really adds up.

A related post here:

A Few Thoughts On How To Think About Dilution

Related Posts

Pin It on Pinterest

Share This