Startup Cap Table & Dilution Calculator
Model your next funding round and calculate ownership dilution
Round Summary
New Shares to Issue: 0
Post-Round Total Shares: 0
Understanding Capitalization Tables
A Capitalization Table (or "cap table") is a spreadsheet or ledger that summarizes who owns what in your startup. It tracks the equity ownership of founders, investors, and employees, detailing the number of shares, classes of stock, and percentage of ownership.
Key Metrics Explained
- Pre-Money Valuation: The agreed-upon value of the company before the new investment is added.
- Post-Money Valuation: The value of the company after the investment (Pre-Money + Investment Amount).
- Dilution: The reduction in ownership percentage for existing shareholders when new shares are issued to incoming investors.
- Price Per Share: Calculated as Pre-Money Valuation divided by the number of shares existing immediately before the round.
Example Scenario
Imagine your startup has 8,000,000 shares held by founders. You agree on a $4,000,000 Pre-Money Valuation and an investor puts in $1,000,000.
| Metric | Value |
|---|---|
| Post-Money Valuation | $5,000,000 |
| Price Per Share | $0.50 |
| Investor Equity | 20% ($1M / $5M) |
| Founder Dilution | Reduced from 100% to 80% |
Why the Option Pool Matters
Investors often require an Option Pool Increase before they invest. Usually, this "comes out of the pre-money," meaning the dilution for the option pool is borne by the existing founders, not the new investors. Our calculator accounts for simple dilution, but always consult legal counsel for complex "post-money safe" or "pre-money option pool" math.