What is startup dilution?
Startup dilution is the reduction in ownership percentage when new shares, investor ownership, or option pools are added.
Is option pool dilution always calculated this way?
No. Option pool timing and negotiation terms matter. This calculator is a simplified planning estimate.
Does this replace a cap table model?
No. Use a detailed cap table model or legal/finance advice for actual fundraising terms.
Can this replace accounting or legal advice?
No. Business tools are scenario planners. Contracts, taxes, payment timing, accounting treatment, refunds, and legal requirements can change decisions.
What should I do after using a business tool?
Save the assumptions, compare a conservative scenario, and review the result with actual books, contracts, or an advisor before making a high-stakes decision.