I thought 5% to 7% of equity is more than enough for an investor in a startup that has the potential to be the next Facebook, Amazon or Google? I was reading earlier where investors want 10% to 15%? That seems high. When you look at what other VC’s have asked for with companies such as Facebook, Google, etc

"Potential" is a very common word that investors hear. The amount of equity an investor would want depends on the stage you are at. If you have built something and proven the model then you have the ability to negotiate harder and get a fairly good deal. But if you are looking to raise money with just a set of wireframes investors will need a bigger piece of the pie.

Answered 4 years ago

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