Financing changes more than a company’s cash balance. Explore venture capital terms, private equity structures, and dilution through examples that separate price, preferences, borrowing, and ownership. The collection distinguishes a fund investment from a direct company holding and keeps transaction assumptions visible. Read the venture guide for a priced-round framework and the dilution article for the accompanying share-count math.
Separate three different questions
What is the company worth under the proposed financing? Which rights come with the security? What percentage remains after every transaction step? The venture guide tackles the deal, the dilution guide tackles the denominator, and the private equity guide separates fund-level interests from company-level economics. Read them as complementary frameworks rather than interchangeable descriptions of investing.
Venture Capital Equity: Valuation, Preferences, and Control
Explore venture capital equity with clear examples of pre-money valuation, liquidation preferences, option pools, governance, and financing trade-offs.
Equity Dilution from Financing: Worked Examples for Founders
Follow equity dilution through a priced round, option-pool increase, and simplified SAFE scenario with clearly defined ownership denominators.
Private Equity Explained: Funds, Buyouts, and Ownership Economics
Separate private equity fund interests from company ownership, and examine buyout financing, cash flows, performance measures, fees, and incentives.