#928 · Startup Tool

Seed Stage Equity Calculator

Model seed-stage equity after investment, including founder ownership, investor ownership, option pool impact, and post-money valuation. Use it to preview the cap table before fundraising.

Calculator

Seed-stage inputs
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How to use this calculator

  • Enter the pre-money valuation and investment amount.
  • Enter current founder ownership before the round.
  • Add the target option pool percentage to see post-round ownership pressure.

What the result means

Investor ownership comes from investment divided by post-money valuation. The option pool further reduces founder ownership on a fully diluted basis.

Post-money = Pre-money + Investment. Investor Ownership = Investment / Post-money × 100. Founder After = Founder Ownership × (1 - Investor Ownership% - Option Pool%).

Real cap tables can vary depending on whether the option pool is created pre-money or post-money.

Example calculation

With a $5M pre-money valuation and $1M investment, post-money is $6M and investor ownership is 16.67%. With a 10% option pool, founder ownership is reduced further.

Tips for better results

  • Clarify whether the option pool is pre-money.
  • Model future Series A dilution before accepting terms.
  • Avoid excessive early option pool expansion.
  • Use vesting for founder alignment.

FAQ

How much equity should founders keep after a seed round?

Many founders aim to retain a meaningful majority after seed financing, but the right level depends on investment size, valuation, option pool, and future funding needs.

How do I calculate investor ownership after seed funding?

Divide the investment amount by post-money valuation. Post-money valuation equals pre-money valuation plus investment amount.

Does the option pool dilute founders at seed stage?

Yes. An expanded option pool usually dilutes existing holders, and if it is created pre-money, founders may bear more of the dilution.

What is a normal seed investor ownership percentage?

Seed investors often target a meaningful minority stake, but ownership varies by market, traction, valuation, and round size.

Should I accept a lower valuation for less dilution?

Lower valuation increases dilution for the same investment. The decision depends on capital need, investor quality, and whether the terms help reach the next milestone.

Seed-stage decision table

MetricMeaning
Post-moneyCompany value after new investment.
Investor OwnershipInvestment share of post-money valuation.
Founder OwnershipFounder stake after investor and option pool impact.
Option PoolReserved equity for hiring incentives.

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