Executive summary
For startup founders, raising venture capital represents a type of trade. In exchange for receiving capital that they can use to build a product, hire employees, and jumpstart growth, founders must relinquish some of their ownership, in the form of company equity.
This equity is among a startup’s most precious resources. And they typically spend it rather quickly. By the time a company raises a seed round, the median founding team retains about 56% of their fully diluted equity, based on Carta data on rounds raised from 2021 through 2025. By the time it raises a Series A, median founder ownership declines to 36%.
These metrics can vary significantly by sector. Over the past five years, founders in software and AI typically retain a larger percentage of their company equity than founders in physical and non-AI sectors do at the same stages of growth.
Upon raising a Series A, for instance, the founders of the median startup operating in a digital industry retain 37.5% of their total equity. In physical industries, that rate drops to 30.5%.
At Series B, the median AI founding team maintains 27.3% of their fully diluted equity. The median non-AI founding team, meanwhile, holds a 21.8% stake at that same juncture. This trend holds across all fundraising stages, although to differing degrees.
The bifurcation of the startup world between the most sought-after AI companies and everybody else is perhaps the defining trend of the current era in the venture capital ecosystem, impacting everything from deal counts to exits to valuations. The market for founder ownership is no exception.
Report highlights
Solo founders are increasingly common: About 36% of startups founded on Carta in 2025 were led by solo founders, a jump from 31% in 2024. Over the past 10 years, the proportion of new startups with solo founders has doubled.
Two-person founding teams are most likely to raise VC funding: Among startups that successfully raise venture funding, however, two-person founding teams are most common. Last year, 36% of startups that closed rounds on Carta had two founders, a rate that rises to 40% in the SaaS industry.
More founding teams are dividing equity equally: Most founding teams with multiple members do not give an equal share of equity to each founder. But the percentage of those who do is on the rise. The rate of even equity splits rose to 27.3% last year for three-founder teams, up from 21% the previous year, and to 16.7% for four-founder teams, up from 10.8%.
Employee ownership surpasses founder ownership at Series C: At the seed stage, the median founding team still owns more than 50% of their company’s equity, while the median employee pool comprises just 12.1% of equity. Before too long, however, that math flips: At Series C, the median employee equity pool (16.8%) outstrips median founder ownership (16.1%).
Full report available—Start reading now:
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
