From: Simeon Simeonov, Technology Partner, Polaris Venture PartnersFounders often ask me, “If I own X% after my first investment round, how much will I be diluted through financings until exit?”. A follow-on question is: “How much option reload will I get to compensate for that dilution?” There are rules of thumb but there is no ...
This link gives an example cap table for a company that raises several rounds of money. It shows the valuation progression and the dilutive effects of each subsequent rounds.
The story of the investments made in Skype from the initial founders, to Angels, to VCs, and how the equity percentage panned out for each at exit.
My firm just published our Spring 2008 Entrepreneurs Report, summarizing trends in the venture-backed technology market over the last several years. Among the statistics is this chart showing the average founder equity dilution in Series A and Series B financings broken down by industry.