A new funding calculator takes the mystery out of investment and what your bottom line is when your startup is acquired.
“The calculator basically takes you through each event that can affect the division of a company’s equity,” Ha says. Start with your company’s founding by entering the total number of shares, the number of founders, and how much equity they each receive. From there, you can add employees and advisors and the equity that they get. Include “funding events and their details,” as well as your exit, and the calculator goes to work.
Ha acknowledges that “some of this, of course, is fantasy math” as you don’t know when or if you’re going to be acquired. SmartAsset’s funding calculator does, however, help “you understand that ultimate financial outcome, displaying how much each party would make off a given deal, and, more importantly, how changing the terms of the deal would affect how much you make.”