How Much Equity Should You Give Away at Pre-Seed?

Most UK founders give away somewhere between 10% and 25% of their company at pre-seed. Where you land depends on how much you raise, the valuation you agree, and how strong a position you're negotiating from. This guide covers the typical ranges, what moves the number, and how dilution builds up between pre-seed and Series A, based on the data and on what we see in our own deal flow.

If you want to model your own numbers as you read, use our dilution calculator.

How much equity do founders give away at pre-seed?

Most pre-seed rounds we see raise between £250k and £750k, and founders give away anywhere from 10% to upwards of 25%. SeedLegals puts it at 10% to 20% for most UK startups at pre-seed (SeedLegals).

Beauhurst data across 2025 shows the average equity given away at pre-seed and seed was around 16%. Beauhurst also puts the median pre-money valuation for a UK seed-stage round at around £2.0m in the first half of 2026.

Putting those two together gives a rough picture of a typical round. If you sold 16% at a £2m pre-money valuation, you'd raise about £380k, for a post-money valuation of about £2.38m. That's an illustration from averages, not a data point, but it's a useful sense check.

Our own pipeline tells a similar story. Across the 1,234 applications we've received since November 2024, the median round size founders told us they were raising was £350k, and 61% were raising between £250k and £750k. Over the last 12 months the median has moved up to £500k. Founders tend to pick round numbers like £250k and £500k, so the median moves in steps, but the direction is clear.

What drives the number.

The equity you give away comes down to two things: how much you raise and the valuation you agree. Raise more at the same valuation and you give away more. Agree a higher valuation for the same raise and you give away less.

In the main, what pushes the valuation up is a very credible team with good traction for the stage they're at. That's what investors are paying for at pre-seed.

The founder's skill in running a good fundraise matters too. A well-run sales process gets you in front of the right investors, builds momentum and puts you in a stronger position to negotiate.

Competition also moves the price. If you can get a competitive round, with more than one investor wanting in, you can walk the valuation up. That's true at any stage. It's harder at pre-seed, because fewer funders are willing to come in this early than at later stages, but it still makes a real difference when you can create it.

The option pool.

An option pool is a slice of equity set aside for future hires. At Solid Bond, we insist on an option pool of about 10% being in place after a pre-seed round. In later rounds, the pool is usually topped back up to around 10%, which dilutes everyone again, so factor that in when you look ahead.

Check whether the pool is being created before or after the new money comes in, because that decides whose share it comes out of. Our guide to pre-money vs post-money valuation explains how that works.

How much should founders own by Series A?

Carta's data shows the median founding team owns about 36% of the company after Series A, and about 56% after seed. That's based on rounds raised on Carta's platform from 2021 to 2025 (Carta Founder Ownership Report 2026). There's a real range around that. Some Series A investors get put off if the founders own less than 50% of the cap table. Others are comfortable investing below that.

There are ways to increase the founders' shareholding later, such as growth shares or options from the pool. We do tend to see that come in at later rounds, but it can put some investors off, so it's better not to rely on it. Keeping an eye on dilution from pre-seed onwards is the simpler route.

Cap table red flags investors look for.

How much you give away in the round matters, but so does what's already on your cap table. The biggest red flags we see are:

• Dead equity. Large stakes held by people who are no longer involved in the business.
• Too much equity given to advisers. Advisers can be valuable, but big stakes for light involvement eat into what's left for the team and future rounds.
• Co-founders with large stakes who won't survive the journey. If it's clear a co-founder holding a big slug of equity isn't going to be there for the long run, investors will notice.

If any of these apply, it's better to deal with them before you raise than to have an investor raise them for you. Our guide to what a cap table is covers how to read and tidy one.

What we look for.

We invest £150k to £500k in UK B2B tech and tech-enabled startups, usually in rounds of up to £1m. You can see the full picture on our criteria page.

Next steps.

Model your own round in the dilution calculator, then read What Is a Cap Table? to make sure yours is ready for investors. If you're raising pre-seed and think we could be a fit, apply for funding.