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Startup Cap Table Dilution Simulator
Explains and models potential equity dilution scenarios for founders across multiple fundraising rounds.
Use Case
Use this before talking to angel investors or VCs to understand how much of your company you are actually giving away.
AI Prompt
Act as a startup venture capital analyst. Help me map out and understand equity dilution. I am starting with two co-founders with an initial split of [Insert Initial Split, e.g., 60/40]. We plan to raise a Pre-Seed round of [Insert Pre-Seed Amount] at a [Insert Pre-Seed Valuation, e.g., $4M post-money] with a [Insert Option Pool Size, e.g., 10%] option pool. Then, we plan a Seed round of [Insert Seed Amount] at a [Insert Seed Valuation, e.g., $10M post-money]. Calculate and explain the step-by-step dilution of the founders' equity through these rounds. Show the math clearly and explain what these shifts mean for control and payouts.
How to Use
- 1Modify the placeholders with your founder split, fundraising amounts, and valuations.
- 2Run the prompt to see a step-by-step narrative mathematical breakdown.
- 3Use this data to negotiate better term sheets.
Example Output
Initial State: Founder One owns sixty percent and Founder Two owns forty percent. Pre Seed Round: We establish a ten percent option pool, which dilutes the founders to fifty four percent and thirty six percent respectively. The pre seed investor buys twelve and a half percent of the company for five hundred thousand dollars. Post round ownership becomes: Founder One forty seven point twenty five percent, Founder Two thirty one point five percent, Option Pool ten percent, and Pre Seed Investor twelve point five percent. Seed Round: The seed investor buys twenty percent of the company for two million dollars. This dilutes all existing stakeholders by twenty percent. Post round ownership becomes: Founder One thirty seven point eight percent, Founder Two twenty five point two percent, Option Pool eight percent, Pre Seed Investor ten percent, and Seed Investor twenty percent. Summary: Your overall control has shifted from one hundred percent to sixty three percent combined, while the value of your shares has increased significantly.
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