The Equity & Dilution Lab
Raising capital is not free money. Model how seed rounds and priced venture rounds dilute your ownership while (hopefully) increasing the pie value.
POST-MONEY VALUATION
$6,000,000
FOUNDER NET WORTH
$5,000,000
INVESTOR STAKE
16.7%
83%
FOUNDERS
83.3%
INVESTORS (ROUND)
16.7%
TOTAL DILUTION: -16.7%
The Founder Dilemma
Dilution is only good if the **Pre-Money Valuation** increases enough to make your smaller percentage worth more than your previous larger percentage. Always check your post-round net worth, not just your equity %.