Raising rounds of funding is vital to most tech startups and, over time, it's become a source of prestige and a seal of approval in the community. Yet, raising money is tough and all conditions must be evaluated carefully, especially those regarding the founders' financial and managerial positions. This calculator lets you assess the impact of a new funding round on your current cap table, including the number of new shares issued and % of founders' dilution.
The typical components required to compute the impact of a new funding round are:
The amount of money raised
The current number of shares issued
The pre-money valuation of the deal, that is the implicit price the new investor is going to pay to become a shareholder of the company
The presence of an employee equity pool and current shareholders' willingness to top up.
This calculator's output includes:
Number of new shares issued
Share price paid
Total Founder(s) dilution