The Silliness Of Recapping Seed Rounds
Feld Thoughts
JULY 14, 2015
Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. So they recapitalize the company. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company.
70 
Let's personalize your content