Finance Lab
Raise, price and dilution
See what a raise costs you in ownership before you agree it.
Post-money = pre-money + amount raised. Investor share = amount ÷ post-money. New shares are issued at pre-money ÷ existing shares, with any option pool created before the round.
Step 1 · Enter your figures
Every box starts with an example figure. Replace each one with your own — the result updates as you type. Nothing you type is sent anywhere or stored.
Agreed value of the business before the new money arrives.
New money being invested.
Total shares before the round.
Options set aside for the team as part of this round, as a share of the post-money company.
Step 2 · Read the result
Post-money valuation
$5,000,000
- Price per share
- $4.00
- New shares issued
- 250,000
- Investor ownership
- 20.0%
- Option pool
- 10.0%
- Your ownership after the round
- 70.0%Existing holders share this between them in their current proportions.
- Price per share$4.00
- New shares issued250,000
- Investor ownership20.0%
- Option pool10.0%
- Your ownership after the round70.0%
What this answer rests on (6)
- Pre-money valuation$4,000,000
You entered this
Agreed value of the business before the new money arrives.
- Amount raised$1,000,000
You entered this
New money being invested.
- Existing shares on issue1,000,000
You entered this
Total shares before the round.
- New option pool created10.0%
You entered this
Options set aside for the team as part of this round, as a share of the post-money company.
- The option pool is created out of the pre-money position, which is the common structure and the more dilutive one for existing holders.
The calculator applied this
- One class of shares with no liquidation preference, discount or conversion right is assumed. Preference terms change the economics materially.
The calculator applied this
Want to keep this? Save it against a project in your workspace.
Save to my workspaceWhat this means for you
What percentage of your business you give away for the money you raise, and what your remaining holding is worth on that same pricing.
How to read it
- Pre-money is the value agreed before the money goes in; post-money is pre-money plus the raise.
- Your ownership after the raise is your existing shares over the enlarged total.
- A higher valuation is not automatically the better deal once terms and control are considered.
Watch out for
- Ignoring options, convertibles and future rounds — dilution compounds.
- Raising more than the plan needs simply because it is available.
Assumptions behind this result
- The option pool is created out of the pre-money position, which is the common structure and the more dilutive one for existing holders.
- One class of shares with no liquidation preference, discount or conversion right is assumed. Preference terms change the economics materially.
General information only. This calculator does not take your circumstances into account and is not financial, tax, legal or investment advice. Confirm every rate, threshold and figure with your own adviser before acting.
Related calculators
Other tools in value and ownership.
Take this further
Members run this calculator on their own recorded figures, save the workings to their workspace, export them to Word or Excel, and read the lessons that teach the thinking behind the result.