I am a startup founder with 5 customers (50K revenue in 5 months) for a a B2B SAAS product.
We will add another 3-4 customers in another month. I want to raise a super angel round for 700K.
I have no idea how to go about it. What should I do?
Answer to your initial question:
Anything between 10-30% should be reasonable as a dilution.
I assume you are raising a seed round from an angel investor (or super angel) with no prior investment in your startup.
Now, the dilution percentage you should be expecting when a capital of $700k pours into your startup's bank account has to do with the valuation you will receive (your angel will evaluate what percentage of your company the $700k he is paying buys him).
For example, if your company gets a valuation of $3.500.000 the $700.000 the angel investor will put will buy him 20% of your company. Hence, your percentage of ownership (I assume you are the sole founder who currently holds 100%) will get diluted to 80% following the raise of funds.
You mentioned you will add 3-4 customers, which helps getting a better valuation for sure, but there are really lots of different facts that can affect your valuation.
May I ask why you want to raise particularly $700,000?
Feel free to jump on a call with me, if you wish.
Im an investor and advisor. As many people as you ask, you will get different answers. The best and most successful way to raise capital is to start with people you know, aka friends and family. If friends and family are insufficient as they often are, then you need to find angels. If you dont know anyone, network. They arent hard to find. It might be a good idea to find a few prominent local people to serve as advisors and get their help in raising money. The worst part about raising money is that it almost always deflects from running the business. If you want to discuss this further, Im available.