How Startup Funding Works – #infographic

 

How Startup Funding Works from Funders and Founders co-founder Anna Vital does a great job of visualizing the split of equity at different stages of a company’s life.

A hypothetical startup will get about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. If all goes well. See how funding works in this infographic:

Is dilution bad? No, because your pie is getting bigger with each investment. But, yes, dilution is bad, because you are losing control of your company. So [...]