Startup Equity Calculator
Model fundraising dilution and capitalization table changes. Calculate post-money enterprise valuation, new investor ownership stakes, and existing founder equity dilution percentages across pre-seed, seed, and Series A venture financing rounds.
Agreed enterprise valuation prior to receiving new investment capital
New cash capital committed by incoming venture investors
Current founder ownership percentage prior to this financing round
Total company valuation immediately following the investment
How to Use This Calculator
- Enter agreed pre-money valuation negotiated with lead venture investors.
- Enter total cash investment being raised in the round.
- Enter current founder equity ownership percentage before the round.
- Review post-money valuation, investor ownership stake, and diluted founder ownership.
Formula & Calculation Methodology
Adds new cash investment to pre-money valuation to determine post-money capitalization and prorated equity dilution.
Worked Example
$1,000,000 raised on a $4,000,000 pre-money valuation with 100% initial founder ownership
Frequently Asked Questions
What is the fundamental difference between pre-money and post-money valuation?↓
Pre-money valuation is what the company is worth before receiving investment. Post-money valuation is Pre-Money plus new cash raised: Post-Money = Pre-Money + Investment.
What is a typical equity dilution percentage in a Seed or Series A round?↓
Venture investors typically target 15% to 25% equity ownership in a priced Seed or Series A financing round.
How does an Employee Stock Option Pool (ESOP) affect founder dilution?↓
Lead venture investors almost universally mandate creating or expanding an unallocated ESOP pool (typically 10% to 15%) on a pre-money basis, diluting existing founders rather than incoming investors.
Why is owning a smaller percentage of a larger company advantageous?↓
Owning 80% of a $5M company ($4.0M value) provides far more capital and enterprise value than owning 100% of an unfunded venture that runs out of cash.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.