Free Funding Round Scenario Modeler
Compare multiple funding scenarios side-by-side. Model different valuations, raise amounts, and terms to see how they affect your ownership and exit value.
Current Cap Table
Current Founder Ownership
60.0%
Funding Scenarios
How to Use the Funding Round Scenario Modeler
Create Your First Scenario
Enter your current cap table, then input a funding scenario with raise amount, pre-money valuation, and option pool increase. Name it for easy comparison (e.g., "Conservative Term Sheet").
Add Alternative Scenarios
Create additional scenarios with different terms - higher valuations, different raise amounts, or varying option pool sizes. Model both aggressive and conservative term sheets.
Compare Key Metrics
View side-by-side comparison of founder dilution, post-money ownership, price per share, and total dilution across all scenarios. Identify the trade-offs in each deal.
Model Exit Outcomes
Enter potential exit valuations to see your dollar value at exit under each scenario. Sometimes lower valuations with less dilution produce better outcomes for founders.
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Modeling Funding Scenarios
Every term sheet represents trade-offs. A higher valuation might come with more onerous terms. More capital means more runway but also more dilution. This tool helps you visualize these trade-offs and make data-driven decisions.
Key Considerations
- Runway vs. Dilution: More capital = more dilution, but running out of money is worse than dilution
- Option Pool: Negotiate to keep increases reasonable and share dilution with new investors
- Exit Value: Your ownership percentage times exit valuation is what matters most
- Control: Consider board seats and protective provisions, not just economics
Frequently Asked Questions
How do I compare different funding scenarios?
Create multiple scenarios with different raise amounts, valuations, and terms. Compare founder dilution, ownership percentages, and value at exit across scenarios. This helps you negotiate better terms and understand trade-offs.
What is a good raise amount vs. valuation ratio?
Typically, founders raise 15-25% dilution per round. A $5M raise at $20M pre-money ($25M post) is 20% dilution. Raising more at higher valuations keeps dilution similar but gives more runway. Balance runway needs against dilution.
How does option pool increase affect founder dilution?
Option pool increases typically come from the pre-money valuation, meaning founders bear the dilution. A 10% option pool increase before a round can add 10+ percentage points to founder dilution. Negotiate to minimize or share this burden.
What is pro-rata participation?
Pro-rata rights let existing investors invest in future rounds to maintain their ownership percentage. If an investor owns 20% and the round is $5M, they can invest $1M to maintain 20%. High participation reduces new investor allocation.
Should I optimize for ownership or valuation?
Both matter, but ownership drives your exit proceeds. A lower valuation with less dilution often beats a higher valuation with more dilution. Calculate your value at different exit scenarios to see which deal is actually better.
Related Tools
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Model how equity dilution affects founder ownership across multiple funding rounds. Track ownership changes with each raise, option pool expansion, and SAFE conversion.