This is Tech

My firm just published our Spring 2008 Entrepreneurs Report, summarizing trends in the venture-backed technology market over the last several years. Among the statistics is this chart showing the average founder equity dilution in Series A and Series B financings broken down by industry. The dilution numbers on the BioTech industry are up above 90%, meaning that by the end of the second round of financing, founders of biotech companies don’t own much of the company. The flip-side of this is that biotech projects require a huge degree of funding, and it is difficult to raise that much money without giving up significant equity.