Description
Calculate post-money value and old/new ownership fractions for a simple primary equity investment.
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.
Calculate post-money value and old/new ownership fractions for a simple primary equity investment.
When to use this tool
Use Funding Round Ownership Factor when checking one explicit equity, vesting or payout convention.
How to use the tool and how it works
- Enter preMoney, newInvestment. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read postMoney, retainedFactor, newInvestorShare. Use the output convention below.
Require positive preMoney and nonnegative newInvestment. postMoney = preMoney+newInvestment; retainedFactor = preMoney/postMoney; newInvestorShare = newInvestment/postMoney.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| preMoney | Pre Money | Required. Finite number; strictly above 0. |
| newInvestment | New Investment | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| postMoney | Post Money | Required. Finite number. |
| retainedFactor | Retained Factor | Required. Finite number. |
| newInvestorShare | New Investor Share | Required. Finite number. |
{
"input": {
"preMoney": 800,
"newInvestment": 200
},
"output": {
"postMoney": 1000,
"retainedFactor": 0.8,
"newInvestorShare": 0.2
}
}Limitations and assumptions
- Use one currency and fractions rather than percentages. This assumes one primary investment at the supplied pre-money value, omitting pool changes, conversions and preferences.
- 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
- Founder Vesting Cliff Share
Apply a supplied continuous linear vesting schedule with cliff catch-up and a full-vesting cap.
- Founder Repurchase Right Expired Share Term
Reconcile supplied founder shares into those still subject to repurchase and retained shares no longer subject to it.