What’s coming: 

• This scenario modeling tool helps founders predict the future impact of Safe and Note ownership when converted at a future priced round. 

Who this affects: 

• Users: Equity administrators, Law firm partners
• Packages: All packages (Launch, Starter, Growth, Scale, and IPO-Ready will receive this calculator)

What’s new: 

• View pre and post-money dilution before and after a future priced round, visualizing your ownership at multiple future valuations.
• Model multiple Notes or Safes and a priced round to account for all anticipated fundraising activity between now and the completion of a future priced round.
• Assess the potential impact of different types of convertibles, including pre-money Safes vs. post-money Safes.

Timing: In September, all companies received access to this calculator.

Calculation Definitions For Reference:

Option Pool Increase
(Target Available Pool % *  Post-Money Fully Diluted Shares) - Available Options

Post-Money Valuation
Preferred Price Per Share * Post-Money Fully Diluted Shares

Preferred Price Per Share
Pre-Money Valuation / (Current Fully Diluted Shares + Option Pool Increase+ Converted Shares)

New Fully Diluted Shares
Current Fully Diluted Shares + New Money Preferred Shares + Option Pool Increase + Converted Shares

Conversion Price Per Share (Convertible Notes and Pre-Money Safe)
Lower of:

• (1 - Conversion Discount) * Preferred Price Per Share
• Valuation Cap / (Outstanding Shares + Outstanding Options +Available Options + Option Pool Increase)

 Conversion Price Per Share (Post-Money Safe)
Lower of:

• (1 - Conversion Discount) * Preferred Price Per Share
• Valuation Cap / (Outstanding Shares + Outstanding Options + Available Options + Converted Shares)

Safe/Notes Ownership:

• Convertible Note Converted Shares / New Fully Diluted Shares
• Safe Converted Shares / New Fully Diluted Shares 

Safe/Note holders post-priced round

Converted Shares / New Fully Diluted Shares

New investors post-priced round

New Money Preferred Shares / New Fully Diluted Shares

Your post-priced round ownership

Founder Shares / New Fully Diluted Shares

Dilution of Founder Shares

(% change in Founder Ownership / Current Fully Diluted Shares) * 100

Value of your shares post-priced round

Founder Shares * Preferred Price Per Share