Startup Equity Dilution Calculator
Calculate equity dilution and ownership changes during funding rounds
Funding Round Details
Results
Understanding Equity Dilution
Key Concepts
Essential terms in equity dilution:
Basic Terms:
- Pre-Money Valuation:
Company value before investment
- Post-Money Valuation:
Company value after investment
- Dilution:
Reduction in ownership percentage
Funding Considerations
Important factors:
Key Factors:
- ESOP Pool:
Employee stock option allocation
- Cap Table:
Ownership structure breakdown
- Share Price:
Value per equity share
Equity Management Guide
Valuation Strategy
Key Steps:
- • Research market comps
- • Consider growth metrics
- • Analyze revenue multiples
- • Project future rounds
- • Account for dilution
ESOP Planning
Best Practices:
- • Size pool appropriately
- • Plan for future hires
- • Set vesting schedules
- • Consider cliff periods
- • Document agreements
Investor Relations
Action Items:
- • Maintain cap table
- • Track share transfers
- • Update stakeholders
- • Plan future rounds
- • Document terms