Paritian

Finance

Startup Dilution Calculator (Funding Round, Pre- and Post-Money)

How much of the company you own after a funding round, from your stake, the pre-money valuation, the new investment and any option pool created, with the value of what remains.

Results

Your ownership after the round 30.00 %
Post-money valuation 5,000,000
Share the new investors get 20.00 %
Dilution of your stake 25.0 %
Value of your stake at the post-money valuation 1,500,000
Effective pre-money for existing holders (after the pool) 3,750,000
How it changes
Your ownership after the roundNew money invested 0.0 – 4,000,000.0. Your ownership after the round: 38 → 18Your ownership after the round0102030400.01,000,000.02,000,000.03,000,000.04,000,000.0New money invested

The dashed line marks the value you entered.

What this tool does

Pre-money plus the money invested is the post-money valuation, and the investors' share is simply their cheque divided by that post-money number. What founders often miss is the option pool: when investors require a new pool to be created before the round, it is counted inside the pre-money, so only the existing holders pay for it and the effective pre-money is lower than the headline figure. Dilution is not a loss of value by itself — a smaller piece of a larger company can be worth more — which is why the tool also shows what your stake is worth at the post-money valuation.

Formula

post-money = pre-money + investment · investors own investment ÷ post-money · new stake = old stake × (1 − investor share − option pool)

Variables

SymbolMeaningUnit
osYour ownership before the round%
prePre-money valuation—
invNew money invested—
plNew option pool, as % of the company after the round%
S2Your ownership after the round%
POPost-money valuation—
IPShare the new investors get%
DIDilution of your stake%
SVValue of your stake at the post-money valuation—
EPEffective pre-money for existing holders (after the pool)—

Worked example

  • Your ownership before the round40 %
  • Pre-money valuation4,000,000
  • New money invested1,000,000
  • New option pool, as % of the company after the round5 %
  • Your ownership after the round30.00 %
  • Post-money valuation5,000,000
  • Share the new investors get20.00 %
  • Dilution of your stake25.0 %
  • Value of your stake at the post-money valuation1,500,000
  • Effective pre-money for existing holders (after the pool)3,750,000

Limitations

  • This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
  • The tool works with whatever currency you use for the inputs; it does not convert between currencies.