Series A Dilution
How much can you expect, on average, 1% post series A to be worth at IPO or Acquisition assuming several rounds of funding? (I understand there are lots of factors like leadership, deal structure, etc. just looking for a range estimate) TC 140 YOE 3
Like percentage wise? It depends because you can raise new rounds without dilution. But whoever is running your company could issue more shares and dilute you.
What ipo, what acquisition? Most probably won’t happen.
For ipo you’re betting on the company and its business to be relevant and successful for 10 years. Extremely difficult and very much independent of how good the team is. If you quit before that, your options are done, unless the startup has long option periods. Join only if your other requirements different than money are satisfied.
You can expect around 15-20% dilution per round on the average. So, you will end up with around 0.33% to 0.5% of the company if they raise another 4-5 rounds
This is great, thank you!
Don't join for the money or the expectation that the equity will be worth something. It's bad for you and it's bad for the company at this stage. Assume the equity is worth 0 and decide from there.
Why is it a red flag?
There’s no telling.