How much equity will venture capitalists want in my start-up?
Internet in Business mentor Bradley Feld responds to the following question from an inc.com visitor: What is the typical composition of a start-up's stock distribution betweenfounders and employees and venture capitalists?
Bradley Feld responds:The initial split of stock among venture capitalists, founders, and employees can vary dramatically based on several factors. These may include but not be limited to:
The experience of the founders
The progress of the company
The amount of money the founders are willing to invest in the company
The quality and development of the company's marketplace
While there are no definitive numbers, in my opinion you should expect that most VCs will be interested in buying between 20% and 40% of the company inthe first round.