What is Dilution?
Dilution occurs when new shares are issued to investors, employees, or other stakeholders. As ownership is distributed among more shareholders, existing owners hold a smaller percentage of the company.
Fundraising
Equity Dilution Calculator
Estimate how much ownership founders give up when raising capital and understand the impact of dilution on your cap table.
Results
Post-Money Valuation
$5,500,000
Pre-money valuation plus investment amount.
Cap Table After Round
Founders90.91%
Investors9.09%
Option Pool0.00%
Founders
90.91%
Investors
9.09%
Option Pool
0.00%
Financing impact
Raising $500,000 at a $5,000,000 pre-money valuation results in approximately 9.09% dilution, reducing founder ownership from 100.00% to 90.91%.
What if you raised more?
$500k
$100k$5M
Learn the fundamentals
A quick founder-friendly primer on the concepts behind this calculator.
What is a Pre-Money Valuation?
A pre-money valuation represents the value of a startup before receiving new investment.
What is a Post-Money Valuation?
A post-money valuation equals: Pre-Money Valuation + Investment Amount. Example: $5M + $500k = $5.5M.
Why Dilution Isn't Always Bad
While founders give up ownership when raising capital, the funding can help accelerate growth, hire talent, and increase the overall value of the business. Many successful startups experience multiple rounds of dilution while becoming significantly more valuable companies.
Raising Capital?
Discover investors, automate outreach, track investor engagement, and manage fundraising workflows with Raizee.