Premoney Option Pool Dilution
Solve a pre-money option-pool top-up for a target post-money unallocated pool fraction.
Description
A pre-money option-pool top-up changes capitalization before the investor’s shares are issued.
A pre-money option-pool top-up changes capitalization before the investor’s shares are issued. A post-money target therefore depends on both pool growth and new financing.
Solve a pre-money option-pool top-up for a target post-money unallocated pool fraction.
When to use Premoney Option Pool Dilution
Use this for the following task: Solve a pre-money option-pool top-up for a target post-money unallocated pool fraction.
Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
How to use Premoney Option Pool Dilution and understand its results
- Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
- Enter existingShares, existingPoolShares, investment, premoneyValuation, targetPostmoneyPoolFraction using the field table, then run the tool.
- Read newPoolShares, investorShares, founderPostmoneyPercent. Interpret flags, units, ordering and placeholder values using the rules below.
- Review any reported issue or failed check, correct the supplied values when appropriate, and verify the result in its intended context.
| Input field | Meaning | Value type and bounds | Requirement |
|---|---|---|---|
| existingShares | Existing shares | number | Required |
| existingPoolShares | Existing pool shares | number | Required |
| investment | Investment | number | Required |
| premoneyValuation | Premoney valuation | number | Required |
| targetPostmoneyPoolFraction | Target postmoney pool fraction | number | Required |
Require a valid existing pool inside existing fully diluted shares and target k<1. Solve nonnegative added pool shares, calculate investor shares from enlarged pre-money capitalization, and report non-pool existing-holder percent.1
k=1+investment/premoney; newPool=max(0,(target k existing−existingPool)/(1−target k)) This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.
| Output field | Meaning | Value type |
|---|---|---|
| newPoolShares | New pool shares | number |
| investorShares | Investor shares | number |
| founderPostmoneyPercent | Founder postmoney percent | number |
{
"input": {
"existingShares": 800,
"existingPoolShares": 0,
"investment": 200,
"premoneyValuation": 800,
"targetPostmoneyPoolFraction": 0.2
},
"output": {
"newPoolShares": 266.6666666666667,
"investorShares": 266.6666666666667,
"founderPostmoneyPercent": 59.99999999999999
}
}Limitations and assumptions
The founderPostmoneyPercent field treats all existing non-pool shares as founder holdings. The model adds but never removes pool shares; fractional share outputs are possible.
These outputs describe the supplied scenario; accounting definitions, capitalization terms and time periods must match the intended use. Malformed requests produce input errors. A successfully evaluated request can still contain false flags, empty result lists or a result outside the supplied threshold; those outcomes have the meanings stated above.
Alternative or Complementary methods
Choose Round Dilution Tracker for this operation: Track multiplicative ownership dilution across financing rounds. For a complementary task, use Postmoney SAFE Shares for this operation: Solve one cap-only post-money SAFE share count before new-money financing dilution.
The implementation reference documents the exact calculation, supported input shapes and returned fields.
References
-
Premoney Option Pool Dilution — tool.io
Similar or alternative tools
- Round Dilution Tracker
Track multiplicative ownership dilution across financing rounds.
- Postmoney SAFE Shares
Solve one cap-only post-money SAFE share count before new-money financing dilution.