What percentage should I give an investor?

A practical valuation answer

When bringing in an investor, the key question is what the company is worth before the new money goes in and what rights the investor receives in return. The percentage sold depends on valuation, deal terms, dilution, and the strategic value of the capital.

For this type of engagement, the analysis usually focuses on the company value before the investment, the amount and purpose of the capital, and control, dilution, and investor rights. That is how the answer moves from a generic opinion to a defensible valuation conclusion that fits the facts.

Core valuation checklist

• Confirm the valuation purpose, date, and standard of value before starting.
• Collect the records that matter most: financial statements, tax returns, ownership documents, contracts, and any relevant legal or tax materials.
• Analyze the company value before the investment, the amount and purpose of the capital, and control, dilution, and investor rights.
• Document assumptions clearly so the conclusion can be explained to buyers, advisors, counterparties, or the court if needed.