This is a YouTube video titled "Are AI Startups Getting Better Terms?" containing a discussion about venture funding for AI companies, focusing on typical equity dilution percentages during seed and subsequent funding rounds. The content is from May 21, 2025, and explains how AI startups may experience slightly different funding dynamics compared to non-AI companies.
AI companies are in hot demand. What does that mean in terms of how much they need to sell in order to make these rounds happen? So typically when we give advice to venture founders, it's that you should expect to sell about 20% of your company in a seed round and 20% of your company in a Series A round as you go through the funding round, Series B, Series C, and beyond. You do see that AI companies sometimes sell a little bit less of their companies than the non AI founders. That's probably due to them having multiple term sheets, a little bit more competitive, et cetera. But in general, there isn't a giant change in dilution in just because you're building an AI.
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