What percent of company is given to Investor

**bestill** · 01-30-2009 11:05 AM

I am in the process of presenting my business plan to an investor. Has anyone ever done this before and if so, what is an average percentage that the investor gets of the company?

Thanks.

**mthomas** · 01-30-2009 01:27 PM

I have no experience with this...is this a VC you are referring to or just someone who expressed interest in investing?

However, I would imagine the percentage would vary depending on their perceived risk of the venture, how much money you need from them and what the profit (and revenue) projections look like.

**rogercbryan** · 01-30-2009 03:09 PM

There is no such thing as an average %. Every situation is different based on needs and risk levels.

**bestill** · 01-30-2009 03:27 PM

I know there is no "average" but I was wondering if anyone has had experience in this before. Investors do get a piece of the company, so I am wondering what to expect in most situations.

**akula** · 01-30-2009 04:38 PM

Originally Posted by bestill

I know there is no "average" but I was wondering if anyone has had experience in this before. Investors do get a piece of the company, so I am wondering what to expect in most situations.

sure, i have experience with this
of course there is an average, just as there is an average fund size, there is an average deal size...for example series A, san fran internet plays usually sell 30-40% for $2-3m
dude, this topic has been done to death...i've explained many times how the numbers work...please search for "allocate shares" or "equity share"
are you still unclear on how to determine "What percent of company is given to Investor" ?

**Iamnotsatisfied** · 01-30-2009 04:51 PM

There isn't something you "can expect in most situations". Most investments are different in terms of size of the business, growth potential, capital required and capital offered. I am barely touching the surface here. There is more to it than you think.

**RLorenzen** · 01-30-2009 06:17 PM

I have a friend who just raised a little under $150K for 30% of the company.

**StealYourDreams** · 01-30-2009 06:51 PM

I gave up 10% for 2.5m. It really depends on your pre and post money valuation.

**TylerBakerllc** · 01-30-2009 07:34 PM

I agree with what steal said... Although, I would try my damndest to give up as little of the company as possible. If things take off, it is your ownership stake that will create wealth.

**bestill** · 01-30-2009 08:30 PM

thanks for all the replies guys. I am on the right track now. I will continue looking for other sources with helpful information.

And to let everyone know, I am starting a clothing company and if anyone needs help with this please PM me. i would be glad to help.