Description
Compare gross investment-per-equity and net-cash-per-equity values after an accelerator program fee.
Equity percentages depend on the share base, issuance timing and security terms. A primary investment, option-pool expansion, vesting rule and liquidation preference change different parts of ownership or payout arithmetic; a local formula does not establish legal rights.
Compare gross investment-per-equity and net-cash-per-equity values after an accelerator program fee.
When to use this tool
Use Accelerator Equity Fee Implied Value when checking one explicit equity, vesting or payout convention.
How to use the tool and how it works
- Enter cashInvestment, programFee, equityFraction. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read netCash, grossPostMoney, netCashPerEquity. Use the output convention below.
Require nonnegative cashInvestment and programFee <= cashInvestment and equityFraction in (0,1]. netCash = cashInvestment-programFee; grossPostMoney = cashInvestment/equityFraction; netCashPerEquity = netCash/equityFraction.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| cashInvestment | Cash Investment | Required. Finite number; minimum 0. |
| programFee | Program Fee | Required. Finite number; minimum 0. |
| equityFraction | Equity Fraction | Required. Finite number; maximum 1; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| netCash | Net Cash | Required. Finite number. |
| grossPostMoney | Gross Post Money | Required. Finite number. |
| netCashPerEquity | Net Cash Per Equity | Required. Finite number. |
{
"input": {
"cashInvestment": 100000,
"programFee": 20000,
"equityFraction": 0.05
},
"output": {
"netCash": 80000,
"grossPostMoney": 2000000,
"netCashPerEquity": 1600000
}
}Limitations and assumptions
- The net-cash ratio is not automatically a legal post-money valuation. Service value, preferences, fees outside the model and actual financing rights are omitted.
- 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 complete capitalization table and relevant agreements before using a local share or payout term in a financing decision.
References
Similar or alternative tools
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