Financing Simulation
Financing Simulation
startup

Financing Simulation

This page explains how to simulate the impact of new investment on your company ownership structure.

This page explains how to run a new investments simulation.

Navigate to: [Capitalization] → [Scenario Simulation]

1. When your company receives an investment, share dilution occurs according to the company value and investing amount.
[Scenario Simulation] feature shows equity changes in various cases.

2. Enter pre-money valuation, total new investment, and new option pool.

3. Select option pool calculation methods. There are 3 options.

  • Pre-money: Option pool increase is calculated based on pre-money valuation (before receiving investment). New investors are not subject to dilution.
  • Post-money: Option pool increase is calculated based on post-money valuation (after receiving investment). New investors are subject to dilution.
  • Total number of shares: Option pool increase is calculated by multiplying the total number of shares post financing and option pool rate.

4. Select convertible conversion method. There are 2 options.

  • Pre-financing: Convertibles are converted before the investment. Convertibles only dilute current shareholders, and new investors are not subject to dilution.
  • Post-financing: Convertibles are converted with the investment. Both the current shareholders and new investors are diluted.

5. If you want to include convertible note and SAFE in the simulation, choose from the option.

6. Add investors and select investment type. You can choose “New Issuance”, “Share Transfer” or “New + Existing”.
If you choose “Share Transfer” or “New + Existing” option, select the transferor at the right.

7. When you finish entering everything, click [Run Simulation] to check post-money valuation, total investment amount, price per share, and option pool.You can also see the equity changes of each investor from the result.

8. “List of New Issuance” tab only shows the equity of new investors.

👉 Have questions? Click the chat bubble at the bottom right corner of the QuotaBook home page.

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