How Much Equity Should You Give Up in a Seed Round? What Founders Need to Know

Seed Money

On every Shark Tank episode, one of the most intense moments is when the founder and the investors start talking valuation—how much the company’s worth and how much equity the founder’s willing to give up. Figuring out how much equity you should give up in a seed round is a huge decision, and with it comes some serious consequences. No wonder it’s nerve-wracking, especially if you’re facing it for the first time.

On one hand, you want to snag that funding and land a solid investor, but on the other, you don’t want to give away too much control too soon. You want to prove your business has value, but not so much that it scares off a great investor. Plus, you need just the right amount of investment to get the ball rolling, but still leave room for future funding rounds. It’s gets tricky! AND… there are ways to avoid setting a valuation all together which is the best option when you’re able to do so.

If you do have to set a valuation, what’s the right balance? How much equity should you give up in a seed round? Can you dodge the whole valuation talk until later?

In this episode, I’m diving into how much equity you should give up in a seed round, how to settle on a valuation, and when to defer that valuation discussion till later.

About Your Host

Jayla Siciliano, Shark Tank entrepreneur turned real estate investor, excels in building brands, teams, and products. CEO of a bi-coastal luxury short-term rental company, she also hosts the Seed Money Podcast where she’s on a mission to help early-stage entrepreneurs turn their ideas into reality!

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