Cap Table Calculator
This cap table calculator shows what happens to ownership when a company takes on a new funding round. A capitalisation table, or cap table, lists who owns shares in a company and how much of it they hold, and the moment that changes most is when fresh money comes in. You enter the shares already on issue, split into founders, earlier investors and the option pool, then add the pre-money valuation and the size of the new raise. The calculator sets the share price for the round from the pre-money valuation divided by the existing shares, works out how many new shares the incoming investor receives for their cheque, and adds them to the register. From there it reports the new investor's stake, the post-money valuation, the price per share and the founders' holding after dilution. Everyone already on the register is diluted by the same proportion, the new money divided by the post-money valuation, so the tool makes the trade-off between raising capital and giving up ownership plain to see. Founders, angels and operators use it to sanity-check a term sheet, compare offers at different valuations, and understand how much of the company they are parting with. It is a model for planning and negotiation, not a legal share register.
The pre-money valuation is what the company is worth before the new money lands. New shares are priced at the pre-money value divided by the shares already on issue.
All existing holders are diluted by the same proportion, the new money divided by the post-money valuation. This is a planning model and not a legal share register or valuation advice.
How it works
The round is priced off the pre-money valuation. Divide it by the shares already on issue to get the price per share, then divide the new investment by that price to find how many shares the incoming investor buys. Add those to the existing shares and you have the new total on issue. The new investor's stake is their shares over that new total, which is the same as the investment divided by the post-money valuation. Every earlier holder keeps the same number of shares but owns a smaller slice, because the denominator has grown. The post-money valuation is simply the pre-money valuation plus the cash raised.
Worked example
A startup has 10,000,000 shares on issue: 8,000,000 held by founders, 1,500,000 by earlier investors and 500,000 in the option pool. It raises $2,000,000 at an $8,000,000 pre-money valuation. The share price is $8,000,000 divided by 10,000,000 shares, which is $0.80. The new money buys $2,000,000 divided by $0.80, which is 2,500,000 shares, lifting the total to 12,500,000. The new investor owns 2,500,000 of 12,500,000, which is 20.0%, and the post-money valuation is $10,000,000. The founders, still holding 8,000,000 shares, now own 64.0% instead of 80%, a dilution of 20% of their stake.
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