Description
Allocate prepaid value under a supplied refund-reserve fraction.
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.
Allocate prepaid value under a supplied refund-reserve fraction.
When to use this tool
Use Startup Preorder Refund Reserve Term when you already have prepaidValue, suppliedRefundFraction and need to allocate prepaid value under a supplied refund-reserve fraction.
How to use the tool and how it works
- Enter prepaidValue, suppliedRefundFraction. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read refundReserve, remainingPrepaidValue. Use the output convention below.
Require prepaidValue>=0 and fraction in [0,1]; return prepaid*fraction and prepaid*(1-fraction).1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| prepaidValue | Prepaid Value | Required. Finite number; minimum 0. |
| suppliedRefundFraction | Supplied Refund Fraction | Required. Finite number; minimum 0; maximum 1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| refundReserve | Refund Reserve | Required. Finite number. |
| remainingPrepaidValue | Remaining Prepaid Value | Required. Finite number. |
{
"input": {
"prepaidValue": 1000,
"suppliedRefundFraction": 0.2
},
"output": {
"refundReserve": 200,
"remainingPrepaidValue": 800
}
}Limitations and assumptions
- The fraction is an assumption, not an estimated refund rate or a determination of legally required reserves or revenue recognition.
- 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
- Startup Pivot Hypothesis Tag
Pair explicitly recorded previous and proposed startup hypotheses.
- Startup Interview Consent Label
Label an interview's recorded purpose and consent flag.