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The Cost of Preemptive Deals

  • Article
  • Sep 19, 2019
  • #Fundraising
Aaron Harris
@harris
(Author)
Janelle Tam
@JanelleTam
(Author)
blog.ycombinator.com
Read on blog.ycombinator.com
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We looked at 120 US Series A rounds from our portfolio over the past 18 months to see whether or not preemptive offers were generally more or less dilutive than process driven round... Show More

We looked at 120 US Series A rounds from our portfolio over the past 18 months to see whether or not preemptive offers were generally more or less dilutive than process driven rounds. On average, founders taking preemptive offers are taking ~1.4% more dilution for less money.

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