Who Owns What?

Beth Seidenberg, a partner at VC firm KPCB, says that in the beginning of a company's life cycle, founders typically own the majority of a budding enterprise – often as much as 80 percent, sharing the remainder with seed funders. But as that company continues to flower and VC investors are brought into the fold, that number can drop substantially, with firms owning anywhere from 20-60 percent. Founders are motivated to increase their ownership stake, and the only way to accomplish this, says Seidenberg, is for them to increase the company's value overall.