The round extension is the most popular fundraising round today. You won’t find statistics detailing their rise in PitchBook or Crunchbase, but “reopening the last round” or “raising a round extension” precede pitches Startupland today.
How does an extension impact a company’s cap table on average?
Round dilution from VC dollars has been declining for the past decade. These figures exclude employee stock option (ESOP) dilution.
In the last 12 years, mean seed round dilution has dropped from 25% to 12.5%. Series A has dropped from 30% to 20%; Series B from 22.5% to 12%; and Series C from 18% to 11%. Across financing rounds, dilution from capital has fallen by 30-50% in that decade.
Cumulative Dilution
Founded | 2010 | 2015 | 2022 |
---|---|---|---|
Seed | 25% | 18% | 12% |
Series A | 30% | 27% | 20% |
Series B | 22% | 20% | 12% |
Series C | 18% | 18% | 12% |
Total | 66% | 61% | 45% |
Here’s a table of cumulative dilution for a hypothetical startup raising 4 rounds in one year. It’s not the implied…
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