• February 2019
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How can I find a lawyer to advise about splitting up equity in delaware corp?

While each company and its circumstances are unique, there are some guidelines to consider regarding the usual percentage of shares that get sliced off in Seed, Series A, and Series B rounds. Certainly, much depends on the valuation and other variables that an attorney will discuss with you.

Founders start with 100 percent ownership. Seed rounds – the earliest stage of funding, usually from family and angel investors – typically dilute founders’ ownership by an average of 15%. By the time you reach the Series A stage, you need to be prepared for further dilution. Series A investors are usually funders who provide venture capital for emerging companies. Since their funding typically exceeds $2 million, their percentage of ownership can be as high as 50%.

If you get to the Series B round, expect a dramatically different mindset from earlier funders. Whereas Series A and seed investors believe in your vision and have bought into the prospects of your company, those in Series B want to see that you’ve successfully progressed and satisfied important milestones. They typically see about 33 percent ownership, which will dilute all previous ownership percentages.

Ah I could talk about this stuff all day, but it’s time to answer your question. You should check out my company LawTrades. We’ve helped endless Delaware corps connect with reputable and affordable attorneys to assist them with splitting up equity. Simply visit our site, answer a few questions, and expect to receive a free price quote just minutes later. Hope this helped!

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