Round Dilution Tracker
Track multiplicative ownership dilution across financing rounds.
Description
Dilution across rounds compounds through retained ownership fractions.
Dilution across rounds compounds through retained ownership fractions. Adding percentages would overstate the effect of successive rounds.
Track multiplicative ownership dilution across financing rounds.
When to use Round Dilution Tracker
Use this for the following task: Track multiplicative ownership dilution across financing rounds.
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 Round Dilution Tracker 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 initialOwnershipFraction, roundDilutionFractions using the field table, then run the tool.
- Read ownershipAfterRounds, finalOwnershipPercent. 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 |
|---|---|---|---|
| initialOwnershipFraction | Initial ownership fraction | number | Required |
| roundDilutionFractions | Round dilution fractions | list of number; each entry: number | Required |
Use initial ownership and round dilution fractions in [0,1]. Process rounds in order and return intermediate fractions plus final percent.1
ownershipAfterRound=previousOwnership(1−roundDilution) This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.
| Output field | Meaning | Value type |
|---|---|---|
| ownershipAfterRounds | Ownership after rounds | list of number |
| finalOwnershipPercent | Final ownership percent | number |
{
"input": {
"initialOwnershipFraction": 1,
"roundDilutionFractions": [
0.2,
0.25
]
},
"output": {
"ownershipAfterRounds": [
0.8,
0.6000000000000001
],
"finalOwnershipPercent": 60.00000000000001
}
}Limitations and assumptions
No valuation or share issuance is inferred. Exercise, vesting, transfers and additional pool changes must be reflected in supplied dilution.
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 Premoney Option Pool Dilution for this operation: Solve a pre-money option-pool top-up for a target post-money unallocated pool fraction. 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
-
Round Dilution Tracker — tool.io
Similar or alternative tools
- Premoney Option Pool Dilution
Solve a pre-money option-pool top-up for a target post-money unallocated pool fraction.
- Postmoney SAFE Shares
Solve one cap-only post-money SAFE share count before new-money financing dilution.