Startup Funding: How Much should you Raise in a Startup Funding Round?

[@rogerbrugger]

Great content. Its very well explained and comes along with a very good structure.

[@josuesejour4806]

Thanks for your content

[@Startupsos]

My pleasure

[@ZelenoJabko]

For $50K I would expect at least 20% ownership (while the founder has 80%), sometimes even close to half. That is quite a huge dillution.

[@Startupsos]

20% ownership for a $50K investment implies a post-money valuation of $250K, or a pre-money of $200K. That's a very low pre-money valuation. That's one reason that for a very early stage startup, a convertible note or a pre-money SAFE is generally a better way to go (better for the founders) since the note or SAFE will convert later when the company's valuation is higher.

[@ZelenoJabko]

@@Startupsos Why is post-money valuation of $250K low, it's just an unproven idea with no product. Nobody except FFF would invest, and they deserve high ownership because they took so much risk.

[@aster5031]

5/5