Enter Series A Round Details
Example Data Table
| Scenario | Pre-money | Investment | Target Pool | Note | Expected Use |
|---|---|---|---|---|---|
| Lean SaaS Round | $10,000,000 | $2,500,000 | 12% | $250,000 | Hiring and sales ramp |
| Growth Product Round | $18,000,000 | $5,000,000 | 15% | $750,000 | Product expansion |
| Capital Heavy Round | $25,000,000 | $8,000,000 | 18% | $1,200,000 | Operations and infrastructure |
Formula Used
Post-money valuation = Pre-money valuation + Series A investment.
Round price per share = Pre-money valuation ÷ Pre-round fully diluted shares.
Investor shares = Series A investment ÷ Round price per share.
Discounted note price = Round price × (1 - Discount rate).
Cap price = Valuation cap ÷ Pre-round fully diluted shares.
Note conversion price = Lowest applicable price from round price, discount price, and cap price.
Target option pool shares = Target pool % × Base post-financing shares ÷ (1 - Target pool %).
Ownership percentage = Group shares ÷ Fully diluted post-round shares × 100.
Runway = Post-financing cash ÷ Monthly net burn.
How to Use This Calculator
- Select whether your valuation input is pre-money or post-money.
- Enter the Series A investment amount.
- Add existing issued shares and current option pool shares.
- Enter the target option pool expected after financing.
- Add convertible note or SAFE details, if any.
- Enter current cash, monthly burn, and ARR for runway analysis.
- Click the calculate button to view results above the form.
- Use the CSV or PDF button to save the output.
Series A Funding Planning Guide
Why Series A Modeling Matters
A Series A round changes ownership, control, and future financing paths. Founders often focus on the headline valuation. That number is important, but it is not the whole story. Dilution, option pool expansion, convertible note conversion, and preferences also matter. This calculator gives a structured view of those moving parts.
Understanding Valuation
Pre-money valuation describes the company value before new capital enters. Post-money valuation adds the new investment to that value. A higher valuation usually reduces investor ownership. Yet terms can still create meaningful dilution. A large option pool increase can shift dilution toward existing holders. Convertible notes can also convert at lower prices.
Share Price and Ownership
The round price per share is based on valuation and fully diluted shares. New investor shares are created from that price. Note holders may receive extra shares through caps or discounts. The final ownership percentages depend on all share classes. This is why a simple investment divided by post-money valuation can understate dilution.
Option Pool Impact
Investors often request a larger option pool before closing. The pool supports future hiring. It also affects founder ownership. If the pool is included before the investment, existing holders usually absorb more dilution. Modeling the pool helps founders negotiate with better context.
Runway and Strategy
Funding should connect to an operating plan. Runway shows how long cash may last at the current burn rate. ARR multiple gives a quick valuation reference for revenue companies. Liquidation preference shows the investor’s protected return amount. These outputs help compare term sheets with more clarity. They also help teams prepare board discussions. Use the result as a planning estimate, not a final cap table.
FAQs
1. What is Series A funding?
Series A funding is an early institutional financing round. Startups usually use it to scale product, hiring, sales, operations, and market growth after proving early traction.
2. What is pre-money valuation?
Pre-money valuation is the company value before new investment enters. It helps determine the round share price and the ownership percentage received by investors.
3. What is post-money valuation?
Post-money valuation equals pre-money valuation plus the new investment amount. It represents the company value immediately after the financing round closes.
4. Why does the option pool matter?
The option pool reserves shares for future employees and advisors. A larger pool can reduce existing holder ownership, especially when it is created before investment closes.
5. How are investor shares calculated?
Investor shares are calculated by dividing the investment amount by the round price per share. The final ownership percentage depends on total fully diluted shares.
6. How do convertible notes affect dilution?
Convertible notes can convert into shares during the round. Caps, discounts, and interest can increase note holder shares and reduce other ownership percentages.
7. What does runway mean?
Runway estimates how many months the company can operate with available cash. It is calculated by dividing post-financing cash by monthly net burn.
8. Is this a legal cap table?
No. This is a planning calculator. Final cap tables should be prepared with counsel, accountants, and financing documents before signing any investment agreement.