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: