Tools / Venture Math

See how the
numbers connect.

Change the inputs. Follow the formulas. Explore how a funding round, cash burn, future dilution, and investment terms shape an illustrative outcome.

Four calculators · USD amounts · Results rounded for display

01 / A priced round

Ownership & dilution

A company issues new shares at one agreed price. See the post-money value, the new investors’ ownership, and what happens to an existing holding.

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Formulas & assumptionsPost-money = pre-money + new capital
New investor ownership = new capital ÷ post-money
Existing holder’s new stake = old stake × pre-money ÷ post-money

One share price, all new money is primary capital, and no convertible conversion or option-pool increase. The agreed capitalization definition matters. A lower ownership percentage does not, by itself, establish a lower dollar value.

Concept reference: Carta — pre-money and post-money value ↗

02 / Cash over time

Cash runway

Use actual cash received and paid, rather than booked revenue and expenses. This simple model holds monthly cash flows constant.

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Formulas & assumptionsNet cash burn = monthly outflows − monthly inflows
Runway in months = cash available ÷ positive net cash burn

The same cash receipts and payments recur each month, with no future raise, seasonality, or one-time changes. Timing within a month is not modeled. For a scheduled borrowing and repayment example, use the loan and runway model. If net burn is zero or negative, the model shows no cash depletion under those inputs. That does not establish profitability or guarantee that future cash needs are covered.

Concept reference: Carta — cash burn and runway ↗

03 / A simple ownership model

Illustrative investment proceeds

Connect an initial stake, later dilution, and cash available to equity holders. This model distributes proceeds in proportion to ownership.

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Formulas & assumptionsFinal stake = entry stake × (1 − later dilution)
Gross proceeds = final stake × distributable equity proceeds
Gross multiple = gross proceeds ÷ initial investment

All shares participate in proportion to ownership. Liquidation preferences, fees, taxes, follow-on investments, escrow, and contingent proceeds are not modeled. Use the preference comparison below to explore a different distribution mechanism.

04 / Distribution at exit

Compare liquidation preferences

Keep the investment, ownership, preference multiple, and equity proceeds the same. Compare non-participating preferred with uncapped participating preferred.

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Formulas & assumptionsPreference amount = invested capital × preference multiple
Non-participating = better of available preference or as-converted proceeds
Participating = available preference + ownership share of remaining proceeds

One preferred class and one common class. Non-participating holders may elect the better payout; participating holders have no participation cap. Input proceeds are already available for equity distribution after prior obligations. Other preference classes, seniority stacks, dividends, fees, taxes, escrow, earnouts, and option-exercise mechanics are not modeled.

Concept reference: Carta — liquidation preferences ↗

Connect the result to the terms

The formula is one part of the story.

Read the mechanisms behind the examples, or return to the fundamentals to connect the numbers with the wider investment questions.

All scenarios are educational illustrations, not forecasts or transaction valuations. Inputs are calculated in this browser tab and are not sent to a server or stored by these tools.