What does a deal actually look like?

Of 167 deals, 100 were plain equity: money in exchange for a share of the company. The other deals added terms. In 30, the investor’s share depended on targets: it starts high and falls if the company hits agreed numbers, often by a few points a year. In 14, the investor also took a royalty, a small percentage of sales paid on top of the share. In 11, part of the money came as a loan. In 3, the investor paid partly in services rather than cash.

Targets were most common for growing companies: 22 of the 30 such deals. Those deals also closed further from the ask, with a median valuation cut of 50% against 43% for plain equity (the median is the middle value).

Read the terms, not only the headline number. A target deal can end with a smaller share than the offer says, and a loan or royalty is money you pay back. Choose your stage above the chart to see the deals at your stage.