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Founder Dilution Calculator (by Funding Round)

Estimate founder dilution from a funding round based on pre-money valuation and raise size.

Founder Dilution Calculator (by Funding Round)

Estimate founder dilution from a funding round using pre-money valuation, investment amount, and current ownership.

Input your round details

Formula

Post-Money = Pre-Money + Investment

Investor Ownership % = Investment / Post-Money

Founder Ownership After = Pre-Round Founder % × (1 - Investor %)

Dilution % = (Founder Before - Founder After) / Founder Before

Assumes no option pool changes or convertibles; include those for full dilution modeling.

Steps

  • Enter current founder ownership % before the round.
  • Enter pre-money valuation.
  • Enter investment amount.
  • Review post-money ownership and dilution.

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The Complete Guide to Founder Dilution by Funding Round

Understand how new capital impacts founder ownership and dilution in each round.

Table of Contents: Jump to a Section

Dilution Basics

Dilution reduces existing ownership when new shares are issued. It is inevitable in fundraising but should be planned.

Dilution Math

Investor % = Investment / Post-money. Founder After = Founder Before × (1 - Investor %). Dilution = (Before - After) / Before.

Typical Dilution Ranges

Seed 10-25%, Series A 15-25%, Series B 10-20%. High dilution should be justified by capital and terms.

Option Pool Impact

Pre-money option pool expansions dilute founders. Include pool changes in a full cap table for precise modeling.

SAFEs/Notes Impact

SAFEs/notes convert at the priced round, adding shares and dilution. Model conversions alongside the round.

Conclusion

Plan dilution across rounds to maintain founder control and align capital raised with milestones. Use full cap tables for precision.

FAQs

What is dilution?

Dilution is the reduction in an existing owner’s percentage ownership when new shares are issued.

How is dilution calculated?

Dilution % = (Pre-round ownership - Post-round ownership) / Pre-round ownership.

What are typical dilution ranges?

Seed 10-25%, Series A 15-25%, Series B 10-20%. Varies by market and traction.

How do option pools affect dilution?

A pre-money pool expansion dilutes founders further. This calculator assumes no new pool; add separately if needed.

How do SAFEs/notes affect dilution?

They convert into equity at the round, increasing share count and dilution. Model in a full cap table for precision.

How to limit dilution?

Raise only the capital needed, negotiate valuation, stage capital, and plan option pool timing.

Summary

This tool estimates founder dilution from a funding round using pre-money valuation, investment amount, and current ownership.

Outputs include investor ownership, founder ownership after the round, dilution %, interpretation, recommendations, and an action plan.

Formula, steps, guide content, related tools, and FAQs ensure humans or AI assistants can interpret the methodology instantly.

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Founder Dilution Calculator (by Funding Round)

Estimate founder dilution from a funding round based on pre-money valuation and raise size.

How to use Founder Dilution Calculator (by Funding Round)

Step-by-step guide to using the Founder Dilution Calculator (by Funding Round):

  1. Enter your values. Input the required values in the calculator form
  2. Calculate. The calculator will automatically compute and display your results
  3. Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Founder Dilution Calculator (by Funding Round)?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Founder Dilution Calculator (by Funding Round) is designed to be user-friendly and provide instant calculations.

Is the Founder Dilution Calculator (by Funding Round) free to use?

Yes, the Founder Dilution Calculator (by Funding Round) is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Founder Dilution Calculator (by Funding Round) is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Founder Dilution Calculator (by Funding Round) accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.