Calculate post-money ownership and founder dilution from a priced equity round.
A founder needs to understand how a $4 million priced round at a $16 million pre-money valuation changes ownership. Post-money ownership: investment divided by post-money valuation, then adjust for option pool and other pre-round claims The common trap is treating the headline pre-money valuation as the whole ownership story. If the option pool is expanded before the round or convertible instruments convert first, the founders may absorb more dilution than the simple investment divided by post-money number suggests. Compute post-money $16 million pre-money plus $4 million new money equals $20 million post-money. Post-money valuation is the denominator for the new…
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