Step 1 - Prepare Raise Targets
Ask Key Questions:
- What are the next milestones you want to achieve?
- What is the minimum amount of runway you need to achieve these goals?
- How much dilution are you comfortable giving away?
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💡 Be clear with how much dilution you want at each round. Convertible instruments can make it difficult to understand how much of the company you have given away before your next priced round. Do not give away too much of % company to early.
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Average round sizes for stage
- Pre-seed being below A$500,000 – mostly about experimenting with your G2M plan.
- Seed round between A$500k-$4m – executing on your first stage of the G2M plan.
- Series A, A$4m-10m+ – early growth, winning the first segment of the market etc.
Average dilution per stage
- <=10% for small pre-seed rounds, typically with investors and accelerators that invest less than A$100k-$200k.
- Between 10-20% for seed rounds where you’re raising between $200k-$2m.
- Between 20-30%+ is generally for larger Series A+ rounds. We think this is too much dilution for founders in their seed round; if you’re raising a lot of money then expect to give up a lot in the early days.
Step 2 - Prepare Cap Table
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💡 Prepare a cap table where you can track ownership of who has what securities in the company.
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Use your own Excel template