How much dilution in a seed round?

Seed rounds typically dilute founders 10–25%, with 15–20% most common. Learn what drives dilution, how option pools add to it, and model your own cap table.

When you raise a round you sell a slice of the company, diluting existing shareholders. Knowing the typical ranges helps you judge whether a term sheet is founder-friendly — and model the cumulative effect across rounds.

Typical dilution by round

RoundTypical dilution
Pre-seed / angel~5–15%
Seed~10–25% (15–20% common)
Series A~15–25%
Series B+~10–20%
A common guideline is to sell 15–20% per priced round. Much more than 25% in a single round is worth scrutinising.

Don't forget the option pool

Investors often require an option pool (commonly 10–20%) to be created or topped up before the round — the "pre-money pool shuffle". This dilutes founders, not the new investors, so factor it into your real dilution.

Cumulative dilution

Dilution compounds. If founders start at 100% and sell 20% at seed and 20% at Series A, they are left with roughly 100% × 80% × 80% = 64%, before option pools. Model the whole path, not one round at a time.

Protecting your ownership

  • Raise only what you need to hit the next milestone.
  • Negotiate pool size and whether it's pre- or post-money.
  • Push for higher valuation rather than just a bigger cheque.
  • Model several rounds ahead before signing.

Quick dilution check

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Investor takes
You keep
Post-money

Run the numbers on your own startup

Use the free Cap Table calculator — no signup, instant results.

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Frequently asked questions

How much equity do you give up in a seed round?

Seed rounds typically dilute founders by 10–25%, with 15–20% most common. The option pool and exact terms can push the effective figure higher.

Does the option pool dilute founders or investors?

When created or expanded pre-money (the usual case), the option pool dilutes existing shareholders — primarily founders — not the incoming investors.

How do I model dilution across multiple rounds?

Dilution multiplies: founder ownership after each round = previous ownership × (1 − new investor %). Use our cap table calculator to model Seed, Series A and B together.

Disclaimer: Benchmarks are general industry rules of thumb compiled from widely cited sources and vary by stage, segment and business model. This is educational information, not financial, investment or legal advice.

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