I invested $5k in a startup 2 months ago for 1% equity. Now they’re raising a $3m seed round, and the lead investor thinks my 1% stake is too much for such a small check. The founder and I are trying to figure out what to do.
I contributed $5,000 and received a 1% equity stake.
The startup is raising a $3 million seed round.
- Decision 1 – Honor the original deal – Preserves trust with the early angel but may risk seed negotiations.
Typical early‑angel checks of $5k–$10k usually receive 0.1–0.5% equity, not 1%+, unless the startup is pre‑product and high‑risk.
- Decision 2 – Renegotiate downward – Reduces the early investor’s % (e.g., to 0.3–0.5%) to align equity with capital, smoothing the seed round but could strain the founder‑angel relationship.