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What is the typical ownership percentage for a seed stage investment?

What is the typical ownership percentage for a seed stage investment?

Top answer:

Though this varies widely, each investment round would sell between 10% and 25% of the company. Best practice is to model the capital journey, tools like this one from Foresight https://foresight.is/cap-table/ are recommended

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Do you suggest to model catchup and claw back clauses?

Top answer:

I would not model them, no. Clawbacks are unusual circumstances that don't occur unless the fund is in trouble. Catch-ups we do not recommend.

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Community Member
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Is it common that funds charge the startup investee a fee to cover for your due diligence costs?

Is it common that funds charge the startup investee a fee to cover for your due diligence costs?

Top answer:

No. VCs will commonly charge portfolio companies for legal fees associated with a deal up to a cap in the term sheet, but it is uncommon to charge for due diligence fees, such as a software audit. These fees can be charged to Limited Par...

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Community Member
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Is it common to have exits happening and proceeds flowing in after the fund operations time period?

Top answer:

Exits can take longer than the standard fund life. However, typically, when extending the fund, VCs don’t charge management fees. The earlier you invest, the more likely that you may need an extension.

 -  Mike Suprovici
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