Free Funding Round Ownership Calculator

Quick answer

Investor ownership after a priced funding round is commonly modeled as investment amount divided by post-money valuation. Founder ownership is then diluted by the new shares issued, with option-pool treatment depending on the deal structure.

Formula

Post-money valuation = pre-money valuation + investment. Investor ownership = investment ÷ post-money valuation × 100

Example

.5M invested at a $5M pre-money valuation creates a $6.5M post-money valuation and about 23.1% investor ownership before additional option-pool effects.

How to interpret it

Option pools can be created pre-money or post-money and materially affect founder dilution. Use the calculator as a scenario model and verify actual financing documents with counsel.

Methodology, assumptions and limitations