Start-up Dilution (2)

MARCH 17TH, 2017

As promised in my first post on startup dilution, I've created a a GoogleDocs dilution calculator that will allow you to see the dilution progression by round, and play with the variables (valuation, raise amount, bridge round discount, stock option pool replenish %, etc.).

A quick summary of the company capitalization outlined in my first post. As of right now, the founder owns approximately 81% of the company, with the remaining 19% belonging to a group of angel investors (mostly friends and family) and a small stock-option pool. The company planned to raise an imminent Series-A round from a VC, a follow on convertible note ‘bridge’ round of $2 million, and a final $5 million Series B ‘growth capital’ raise.

Here's a link to the company cap table. Column B represents the company today, column C represents the company post Series A, and column D represents the company post Series B.

Post any questions or comments in the comments section of the post. I hope seeing the math is helpful.