Enter your pre-money valuation, investment amount, and existing cap table to instantly calculate post-money valuation, new shares issued, and how each stakeholder is diluted.
$10.00M
$2.00M
| Stakeholder | Before | After | Dilution |
|---|---|---|---|
| Founder A | 50.00% | 37.88% | -12.12% |
| Founder B | 37.50% | 28.41% | -9.09% |
| Angel Investors | 12.50% | 9.47% | -3.03% |
| New investors | 0.00% | 15.15% | — |
| Option pool | 0.00% | 9.09% | — |
| Total | 100.00% | 100.00% |
Dilution occurs when a company issues new shares — through a funding round, option pool, or convertible note conversion — reducing existing shareholders' percentage ownership. Your share count stays the same, but the total shares outstanding increases, so each share represents a smaller portion of the company.
Post-money valuation = pre-money valuation + investment amount. If your company is valued at $10M pre-money and investors put in $2M, your post-money valuation is $12M and the new investors own $2M / $12M = 16.7% of the company.
An option pool is a reserve of shares set aside for future employee equity grants. Investors typically require a 10–20% option pool to be created before the financing closes (the 'pre-money' method), which means existing shareholders — usually founders — bear the full dilution of the option pool creation.
Founders typically give up 15–25% of the company in a Seed round and 20–30% in a Series A. The exact percentage depends on the amount raised vs. the valuation. Keeping dilution below 25% per round helps founders maintain meaningful ownership through later stages.
The free, open source cap table platform. Track stakeholders, model dilution, issue equity grants, and get a $999 409A — all in one place.