Our Capital Calculator is designed to help founders easily create an initial capitalization table. It simulates the potential dilution ordinary shareholders might face from issuing shares in certain simple financing transactions, based on the assumptions listed below.
Assumptions:
- Founders collectively hold ordinary shares and 100% of the equity prior to the proposed equity financing, and no other equity has been issued or promised.
- Options promised prior to financing and the free option pool established in connection with the proposed financing are to be factored into the pre-money calculation, such that new investors will not be diluted by the option pool and/or promised options.
- Outstanding SAFEs (Simple Agreement for Future Equity) will convert into the same type of shares offered in the proposed financing, and such conversion shares will be factored into the pre-money calculation, resulting in no dilution to new investors. The conversion of the SAFE is based upon the versions of Y-Combinator post-money and pre-money SAFE publicly available online.
- All references to currency are in USD.
This tool is designed for general use only and may not encompass every financing transaction or scenario. It also should not be used or relied upon for legal purposes. We don’t guarantee the accuracy of the outputs. Therefore, we recommend the results be reviewed by independent experts.
