Impact of 30% Pre-Money Dilution in Friends and Family Round on VC Funding

VCs generally do not penalize founders for selling 30% pre-money in friends and family rounds, as this was historically common practice. VCs primarily care that founders remain adequately incentivized, angels lack control rights, and the cap table appears normal. Restructuring becomes necessary only if pre-seed dilution exceeds 50% or involves significant control provisions.