Question
I was reading earlier where investors want 10% to 15%? That seems high. When you look at what other VC’s have asked for with companies such as Facebook, Google, etc
Answer
I am assuming this is a genuine question.
I will be blunt. A ticket in the powerball lottery have a potential to return $500 Million. But the ticket price is at $1 due to the low probability irrespective of the potential. Similarly the probability of seed funding company provide decent return is 5% and the probability of it provides some return is another 5%. 90% of the seed investments lose. There was a paper from David Rose with the accurate numbers from gust platform.
Typically investors take 10-20% in each round of funding.
