Description
Calculate founder-share dilution from a supplied post-money investor share.
Venture calculations depend on funding scope, fee bases, repayment terms, equity conventions and reporting periods. A post-money investor fraction differs from a pre-money valuation ratio, while constant-burn runway is conditional on a positive burn assumption. Interview consent and reported hypothesis support remain source-record assertions rather than verified evidence.
Calculate founder-share dilution from a supplied post-money investor share.
When to use this tool
Use Accelerator Dilution Postmoney Share when you already have existingFounderFraction, newInvestorPostMoneyFraction and need to calculate founder-share dilution from a supplied post-money investor share.
How to use the tool and how it works
- Enter existingFounderFraction, newInvestorPostMoneyFraction. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read founderPostMoneyFraction, founderFractionReduction. Use the output convention below.
Require both fractions in [0,1]; postMoneyFounder=existingFounderFraction*(1-newInvestorPostMoneyFraction), reduction=existingFounderFraction*newInvestorPostMoneyFraction.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| existingFounderFraction | Existing Founder Fraction | Required. Finite number; minimum 0; maximum 1. |
| newInvestorPostMoneyFraction | New Investor Post Money Fraction | Required. Finite number; minimum 0; maximum 1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| founderPostMoneyFraction | Founder Post Money Fraction | Required. Finite number. |
| founderFractionReduction | Founder Fraction Reduction | Required. Finite number. |
{
"input": {
"existingFounderFraction": 0.8,
"newInvestorPostMoneyFraction": 0.1
},
"output": {
"founderPostMoneyFraction": 0.7200000000000001,
"founderFractionReduction": 0.08000000000000002
}
}Limitations and assumptions
- The new share is post-money, not an investment/pre-money ratio. No valuation, cap table, rights, options or financing agreement is inferred.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile the actual cash-flow forecast, financing agreement, cap table and experiment records for a venture decision. Use the full vesting and funding terms and inspect evidence quality; one balance, status label or supplied fraction does not establish feasibility, ownership or customer demand.
References
Similar or alternative tools
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