In about 12 months you start making Rs. 60 lakhs (6 million) in revenue and want to raise Rs. 25 crores (250 million). How much additional equity should you expect to dilute?



0
the answer is 20%, why not 5% or 40%?

2 Answer(s)


0

As explained in the module, around 20% is what most investors typically take. 5% is too little for so much risk and 40% is too much for an amount of 25 crores

Remember that these are rough numbers and there is no exact science behind this.

0

These valuation numbers vary from region to region. For example in silicon valley startups might be able to command a much higher valuation than in Asia.

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