How much equity should a founder give to a seed investor?
A practical equity framework for early-stage founders that balances control, investor motivation, and future fundraising.
1. Seed stage equity range
At the seed stage, founders typically give between 10% and 25% equity to investors. The exact amount depends on the startup's stage, traction, valuation expectations, and the support the investor brings beyond capital.
2. What investors contribute matters
Investors who bring strategic value, mentorship, introductions, and follow-on capital are worth a higher equity share than purely financial backers.
3. Protect founder control
A good rule of thumb is to keep at least 50% founder ownership after the seed round.