Founder Equity Calculator

1. Enter current company equity value
Use the pre-money equity value for the financing scenario.

2. Enter founder ownership before the round
Use the founder’s fully diluted percentage immediately before the new financing.

3. Enter the new investment
Add the cash invested to calculate a simple post-money equity value.

4. Enter new investor ownership
Use the investor’s post-round percentage to estimate proportional dilution.

5. Compare before and after
Review the founder’s implied value, post-round ownership, and post-money company value.

Founder ownership after round = Founder ownership before round × (1 − New investor ownership). Founder equity value after round = Post-money equity value × Founder ownership after round.

What the result means

The result is the implied headline value of the founder’s post-round ownership based on the entered post-money equity value.

Headline equity value is not the same as cash proceeds or exit value because security rights, taxes, vesting, and liquidity constraints can materially change realized value.

Given: $12,000,000 pre-money equity value, 62% founder ownership, $3,000,000 new investment, and 20% investor ownership.

Calculation: Founder ownership after round = 62% × (1 − 20%) = 49.6%. Post-money equity value = $15,000,000. Founder equity value after round = $15,000,000 × 49.6% = $7,440,000.

Result: The founder’s implied post-round equity value is $7,440,000, compared with $7,440,000 before the round in this internally consistent example.