How Much Equity Should You Give Investors?

When you’re an entrepreneur raising money for your startup from angel investors or venture capitalists, the question that’s on your mind is, “How much equity should you give your investors?” It’s a tough question to answer because angel investors and venture capitalists negotiate term sheets every day and you don’t.

I’ve raised over $100 million in venture capital and private equity funding, and I’ve helped entrepreneurs like you raise rounds between $50,000 and $150 million. In today’s video, I’m going to show you the right questions you should be asking when you’re raising funding, be it your seed round, Series A, or Series B funding.

You’ll want to stick around to the end of the video when I show you how you can maximize the value of your startup.

Say hi on social:

#brettfox, #howmuchequityshouldyougiveinvestors, #investorsforstartupbusiness

[DHurtado-pl]

This video was a powerful wake-up call. It's humbling to realize how much I can still learn, but it's also incredibly motivating! My app has the potential to be a game-changer, but I lack the marketing muscle to truly unleash its power. I don't want to compromise on quality – I want to do this right. Brett, your expertise is undeniable. Would you be interested in helping me make this app a reality? Consulting session, perhaps? Thank you.

[_bob]

Only such an accomplished veteran in the VC world can package the negotiation process so simply. Brett, this content is invaluable to every entrepreneur seeking funding

Every day, these insights, along with the intensive coaching opportunities provide stepping stones towards VC success

[TomLuttrell-yv]

Brett hi, Tom here in London, found you for the first time today...really enjoying your tips...I will teach some of them to my clients...Great job and thanks

[chetanvohra]

Hi Brett! I've been watching your videos for the last full month! Thank you so much for sharing all these precious insights. I feel like I'm so much more prepared for my investment meetings after watching your videos.

I have an IP company and our first IP is a series of children's books of which we sold about USD 0.25 million worth in 24 months. And then we sent out an email to all our customers for raising funds. We got a total amount of 60, 000 USD last year and now we are in talks for a larger fund.

Thank you for what you do! :)

[comaschristian]

Great nuggets of information .. thank you. I have a product that’s gonna be the next Facebook, Tweeter, or Tesla. I will definitely be coming back to your videos for more information

[bullyboybaking]

I'm raising capital to build a specialized bakery café that will be franchised once the system works well enough to move forward.

[chukwuemekannaji]

Thank you daddy Brett for your mentoring. It's priceless.

[chumaski]

Always on point and powerful. The most simple but potent method I have heard. Thanks Brett. I am following...

[robertsugarland]

This video was amazing in content and knowledge.

[paperoverflow]

It feels like it's not really super worth to get investors on bord. It feels like short-term it feels great, but in the long run so much could go wrong and an entrepreneur may feel regrets not having tried other ways to get financial help. A loan may even be more tangible and smart if one is certain of success. It's a really tough desicion to take. People who tend to rely on an angel investor are people who really feel like they have no other choice having been denied funding elsewhere depending one several factors such us culture and available financial institutions willing or capable of helping, but also the contemporary market as demands change over time.

I feel these days it is getting harder to secure an investment, but even the value of currency is on shaky ground.

[njugunahilary]

Great insights, I am still learning on valuation and how to raise investments from investors.

[ronaldbobier]

This will definitely help us as a start up company with a huge market and competitors. Thanks @Brett you have one sub from me.

[jorgehabib]

Incredible video. So usefull for us in Paraguai!! 🇵🇾 thanks

[Primeworld]

Very insightful and informative, thanks sir.

[codypatron]

Hi Brett, I am a niche sneaker brand start-up, if all goes well it will be a top 5 brand. Now tbh there is a lot about business and investing that I don't understand yet, but I could tell when watching this video that it is a GEM, so thank you for that, I will watch again every so often and will follow these rules.
I have put some of my own money and now a friend of mine seems willing to help me with more pre-seed money so I can test my assumptions. But I'm not sure how much to ask, meaning should it be enough money to just test assumptions? And what should I give him in return? And last question, do you offer consulting?
Also I am looking for co-founders, one a entrepreneur/business type person, and probably a marketing person. When I get to the Angel round I may need a funding advisor, depends on how much I can learn by that time.

One of the different type of shoes that we are going to do is a basketball sneakers, and ironically one of the people that had applied for to my co-founder post was a funding advisor, but he had worked for the Miami Heat and some other NBA teams before he became and advisor. So idk may turn out to be a good connection but he backed off of the co-founder interview, which really was a blessing because he already had a full plate.

[danspagedanny]

Am starting a new business which is a tech company, am looking for investors. This video has changed my mind thanks....I was thinking of give them an amount I need.
And if I get an investor how do I pay back?

[seanelevate]

Hey Brett, I loved this video! Quick question: would you recommend setting deadlines for closing deals at the pre-seed stage when it’s on SAFEs?

[yarobshakir]

Hi, we're launching an EMI in the UK end of this month similar to Revalout but with a crowd funding features, what's our valuation pre revenue, thank you

[chadgtr]

how much is your fee for helping startup raise money?

[DistilledHealth]

Brett,

Would you have time to take a quick call…