Jan 25 2007 by Jason

How Expensive / Dilutive is VC Money?

One of the questions that we get the most is “How many percentage points of my equity should I give to a VC wanting to invest X dollars in my company?”

The answer definitely falls into the “it depends” category, but our friends at Cooley Godward Kronish have a great report on what some general guidelines are.

Every so often the publish a “state of the market of VC” report.  If you go here, you will see their publications.  Check out the September 2006 update.  It has a great analysis of the costs of raising capital.  They also let me know that their February report will be out shortly.

One other thing.  I can’t seem to get this to work with Firefox, so take under advisement.