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Enter your round size and pre-money valuation to instantly see how the round dilutes founder ownership — option pool effect included.
Enter founder ownership, round size and pre-money valuation to see the dilution instantly.
Test this in the simulation →Investor Share = Round ÷ (Pre-money + Round) · Founder After = Previous Stake × (1 − Investor − Pool)
Investor share = round ÷ (pre-money + round). A $2M round on $8M pre-money is exactly 20%.
An option pool created as a round condition is carved pre-money in standard practice — meaning it dilutes existing holders.
The number that matters isn't this round's dilution but founder ownership two rounds out — that's what keeps you motivated and fundable at Series A.
The drop in existing shareholders' percentage ownership when new shares are issued. In a funding round the company issues new shares to the investor; the founder's share count doesn't change, but their fraction of the total shrinks.
15–25% is typical for early-stage rounds, plus a 5–15% option pool that may be created as a round condition. The cumulative effect matters more than any single round: founding teams keeping above 50% before Series A is considered healthy.
In standard term sheet practice the pool is sized against post-money but carved pre-money — pool shares come out of existing holders before the investor's money lands. This is known as the 'option pool shuffle' and it is negotiable.
SAFEs convert to shares at the next priced round — not when signed — and add to that round's dilution via their cap or discount. Modeling each SAFE's conversion on the day you sign it prevents the surprise at seed.
In Founder Runway funding rounds grow cash while marking the cap table. Safely test the long-term effect of an early round, a bridge, or an aggressive pool.