How to Calculate Seed Round Dilution
What is Seed Round Dilution?
Seed round dilution refers to the reduction in founders ownership when investors receive new shares for capital. Understanding dilution helps founders plan equity across multiple funding rounds.
Formula
Step-by-Step Guide
- 1Post-money valuation = Pre-money + Investment
- 2Investor ownership = Investment / Post-money valuation
- 3New share price = Pre-money valuation / existing shares outstanding
Worked Examples
Frequently Asked Questions
What is Seed Dilution Calc?
Seed round dilution refers to the reduction in founders ownership when investors receive new shares for capital. Understanding dilution helps founders plan equity across multiple funding rounds
How accurate is the Seed Dilution Calc calculator?
The calculator uses the standard published formula for seed dilution calc. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Seed Dilution Calc calculator use?
This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Seed Dilution Calc calculator use?
The core formula is: Post-money valuation = Pre-money + Investment. Each step in the calculation is shown so you can verify the result manually.
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