If I offer less equity, will I end up giving more?
Offers of 5% or less closed 37% and ended at 3.0× the equity; offers of 15–20% closed 85% at 1.75×.
Deal rate by the equity offered, and how much more deals took
Correlation, not cause.
See your pitch on this chart
- 3 free evaluations a month
- Save pitches and investors
- 5 chat messages with the data
Free · with Google
No password. We only read your name and email.
Equity is the share of the company the founder gives away. We grouped 232 pitches by the equity they offered. Founders who offered 5% or less closed a deal only 37% of the time. Those who offered 15–20% closed 85% of the time.
The second number on each bar is the equity multiple: the equity in the deal divided by the equity offered, as a median (the middle value). Small offers moved the most. A founder who offered 5% or less ended up giving a median 3.0× that share. At 15–20% the deal took 1.75×. Across all deals, the median founder gave away 30% of the company. In 60% of deals the investors took 30% or more, and in 19% they took half or more.
A small equity offer is usually a high valuation in disguise. Investors answer it by asking for more of the company. Correlation, not cause: offer the share that matches a valuation you can defend.
What was said
Abdullah Sallam
OfferYou're asking for 1 million EGP for 10%, and I'd like to offer you 2 million EGP for 20%.
AgriCommit (AgriCommit) · S2 E14 · 10:46 · Paraphrased
Ayman Abbas
OfferI'm offering you 5 million EGP over two years for 40%. I wasn't going to go in, but I am because I like you.
Zinc Print (Zinc Print) · S3 E7 · 19:07 · Paraphrased
Ayman Abbas
OfferI have an offer for you. You asked for 25 million EGP for 20%; I'll give you 30,000,000 EGP for 50%.
ReapUp Egypt (ReapUp Egypt) · S3 E9 · 16:53 · Paraphrased