Understand Dilution with our
Simple Dilution Model

(Free Google Sheet Template)

You Know You Want It?

Current version: 1.5 published Nov 27th, 2019

Ready for Your Back of the Envelope Dilution Calculations

While a complete cap table is important (see Future Flow’s Free Google Sheet Cap Table Template), sometimes a ‘back of the envelope’ calculation give a founder the peace of mind they need.

That’s what this file is about: allowing founders to quickly understand potential dilution for their funding expected journey, before complications.

Covering All The Basics of Fundraising

  • The model includes by default up to 4 Co-Founders and a pool of other team members
  • 5 Fund Raising rounds (named Angels to Series C)
  • An Exit event (Liquidity)
  • Simple Convertible Notes calculations (with Pre or Post Money Cap, and discount)
  • ESOP Pool allocations and topups

How This File Works

Initial funding brainstorming often looks like:

  • “We will raise $250k on a convertible with $2m cap
  • Then we will raise $1.5m at $4.5m
  • Then our Series A will be $5m at $15m
  • Before a Series B of $20m at $80m
  • and Series C of $100m at $400m
  • To reach an exit at $1bn”

And the question is: How much of the company will we own?

Being able to quickly model such funding journey and the impact on you as a founder is important.

That’s what you will do with this Free Simple Dilution Model Google Sheet.

(no worries, initial plan never happen, sometimes it’s worse, sometimes it’s much better. Enjoy the journey)

The answer would be:

  • Both founders own 12.2% at the time of exit, valued $122m

(we added a few ESOP option allocation along the way to attract staff to build such a unicorn)

Visually:

The File also generates visual stories highlighting the dilution and valuation, as well as the details for any shareholders. Check out the 1 page PDF the file generates for you:

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Current version: 1.5 published Nov 27th, 2019

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