Work out investor ownership percentage instantly with clear inputs, formula shown and shareable results.
Investor ownership is the investment divided by the post-money valuation. A new option pool created inside the pre-money valuation dilutes existing holders only, so it must be deducted from their side of the table rather than shared with the incoming investor.
Investor ownership
Ownership % = Investment / (Pre-money + Investment) x 100
Pool share
Pool % of post-money = Pool % x Pre-money / Post-money
Because it is carved out of the pre-money valuation, before the new money arrives. This is standard and heavily negotiated.
At a fixed valuation, yes. Raising more at a higher valuation can be less dilutive per dollar, which is the point of building traction first.