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*Make a copy of this calculator
Start In Column "R" With Increase in ESOP
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Dilution CalculatorCap Table Ownership
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FormationConvertiblesFirst Priced Round
Second Priced Round
Third Priced Round
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FormationFounders90.00%54.00%42.13%36.02%31.02%
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InputsInvestmentInvestment + PIKPre-Money Post MoneyShare PriceOwnershipSharesESOP10.00%6.00%10.00%10.00%10.00%
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Start Shares10,000,000
Founder Common Stock
$90$90$0$100$0.0000190.00%9,000,000Convertible Invesotrs40.00%31.21%26.68%22.98%
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Does the ESOP get diluted?Non-Dilutive
Employee Option Pool
$10$10$0$100$0.0000110.00%1,000,000First Priced Round Investors16.67%14.25%12.27%
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Option Pool %10.00%Total Shares10,000,000
Second Priced Round Investors
13.04%11.23%
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Converting FactorThird Priced Round Investors12.50%
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Convertible InstrumentTypeDiscountDiscount/Cap/MFN/Uncapped/Priced Round Totals100.00%100.00%100.00%100.00%100.00%
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SAFEPost Money20.00%$500,000$500,000$5,000,000$5,000,000$0.3000010.00%1,666,667Cap
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SAFEPost Money20.00%$1,000,000$1,000,000$10,000,000$10,000,000$0.6000010.00%1,666,667CapTotal Shares10,000,00016,666,66721,363,20024,983,98029,012,549
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SAFEPost Money20.00%$4,000,000$4,000,000$20,000,000$20,000,000$1.2000020.00%3,333,333CapShare Price$0.00$0.60$2.25$4.60$13.79
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SAFEPost Money20.00%$0$0$0$0.00000CapValuation $ 100 $ 20,000,000 $ 48,000,000 $ 115,000,000 $ 350,000,000
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SAFEPost Money20.00%$0$0$0$0.00000Cap
Cumulative Founder Dilution
10.00%46.00%57.87%63.98%68.98%
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SAFEPost Money20.00%$0$0$0$0.00000CapESOP Checkyesyesyesyesyes
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SAFEPost Money20.00%$0$0$0$0.00000Cap
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Convertible Shares6,666,667
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Total Shares16,666,667Cap Table Shares
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Increase In ESOP Per Round
FormationConvertiblesFirst Priced Round
Second Priced Round
Third Priced Round
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Future Priced Rounds
(Check Row 5 Column R)Founders9,000,0009,000,0009,000,0009,000,0009,000,000
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First Priced Round$8,000,000$8,000,000$40,000,000$48,000,000$2.2468516.67%3,560,533ESOP1,000,0001,000,0002,136,0002,498,0002,900,000
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ESOP Increase1,136,0001,136,000<---back intoConvertible Invesotrs6,666,6676,666,6676,666,6676,666,667
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Total Shares21,363,200First Priced Round Investors3,560,5333,560,5333,560,533
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Second Priced Round Investors
3,258,7803,258,780
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Second Priced Round$15,000,000$15,000,000$100,000,000$115,000,000$4.6029513.04%3,258,780Third Priced Round Investors3,626,569
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ESOP Increase362,000362,000<---back into Total Shares10,000,00016,666,66721,363,20024,983,98029,012,549
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Total Shares24,983,980
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Third Priced Round$50,000,000$50,000,000$300,000,000$350,000,000$13.7871414.29%3,626,569
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ESOP Increase402,000402,000<---back intoYour Shares1,000,000
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Total Shares29,012,549
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Ownership %10.00%6.00%4.68%4.00%3.45%
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Total Raised$78,500,000Ownership Value$10$1,200,000$2,246,854$4,602,950$12,063,745
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QSBS Tax Savings$2$285,600$534,751$1,095,502$2,380,000
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*If the preceding priced round is below the cap on the no discount convertible note, there will be a circular reference.
(Check out qsbsexpert.com to find out if you have QSBS)
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Key
Interest Calculation (Only for convertible notes "CN")
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InvestmentDays HeldRateTotal PIKIntend to pay off? (Yes or No)
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Hardcoded Cells------>
0Note1805.00%$0.00
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PIK
Paid in kind (interest)
Note1805.00%$0.00
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CN
Convertible note
Note1805.00%$0.00
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SAFE
Simple agreement for future equity
Note1805.00%$0.00
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MFN
Most favorable nation
Note1805.00%$0.00
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ESOP
Employee stock option pool
Note1805.00%$0.00
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Note1805.00%$0.00
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*Note: Expect dilution up to 80% if you are exiting in 7 years and raising a round every 18-24 months.
Note1805.00%$0.00
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**Note: If more SAFEs, equity investments, or complexities are added the formulas may need to be altered
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By: Brett Calhoun
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Reach out for questions at brett@redbud.vc
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