If a venture studio won't tell you their equity split before you sign, walk away. We publish ours because we have nothing to hide and everything to gain by working with founders who chose us knowing exactly what they're getting into.
You keep majority equity from day one. The exact split depends on how much capital we invest and how much operational work we take on, but the founder always holds the majority going into the seed round. We take a minority stake, period.
We don't include reverse vesting provisions that claw back your equity if the company hits a rough patch or if we part ways. Your equity is a reflection of the work you've done and the risk you've taken — we don't take that away from you.
Our intensive co-building period runs six months. After that, we step back into a minority investor and advisor role — but we don't disappear. You get ongoing support for as long as you're building. We're in your corner permanently, just without the daily overhead.
Our equity is based on two things: the capital we invest and the work we do. We don't have a flat rate.
We invest pre-seed capital to cover the operational costs of the build period — engineering, design, legal, incorporation, and your salary during the build. The amount is negotiated based on the scope of the company and what we're taking on together. It converts to equity at the pre-seed valuation we agree on at term sheet signing.
We also take a small additional stake reflecting the GTM and operational work our team does that doesn't show up in the capital number — the customer calls, the playbook development, the recruiting pipeline, the fundraising prep. This is the studio equity, and it's modest: typically low single digits in addition to the capital-based stake.
There are no management fees, no success fees on future fundraising, no consulting fees for ongoing support, and no preference stacks that dilute your economics at exit. What you see on the term sheet is what you get.
We don't include provisions that allow us to acquire your company for a discounted price if things go sideways, or that give us first rights on acquiring your team. Your company is yours. We're on your cap table as a supporter, not a safety valve for our downside.
Before you sign anything with any studio or accelerator, ask for these numbers. Here's how we stack up.
| Dimension | Alder VC | Typical studio | YC / top accelerator |
|---|---|---|---|
| Founder equity at start | Majority | Often 30–50% | ~93% (YC takes 7%) |
| Reverse vesting on founder | None | Common | Not typical at YC |
| Capital invested | Negotiated | Varies widely | $500K at $1.1M post (YC) |
| Ongoing fees | None | Management fees common | None |
| Acqui-hire clause | None | Common in smaller studios | None |
| Engagement length | 6 months intensive, support forever | Often ongoing / unclear | 3 months (cohort) |
| In-house engineering | Yes | Varies | No |
| Founder profile requirement | Vertical operator (10+ yrs) | Varies | Broad |
| Terms published upfront | Yes | Rarely | Yes (YC standard) |
If you've read this and the terms work for you, the next step is a 30-minute call about the problem.
Pitch us