Connect investment amounts to share counts and negotiated rights. These articles work from a capitalization record through venture terms and dilution scenarios, explaining what a clean model includes and what a simplified example leaves out. Use the collection to prepare questions before a financing discussion, especially around option reserves, convertible instruments, and the sequence of transaction steps.
Make the transaction sequence explicit
Sketch a before-and-after capitalization and place each change between the two. Separate new shares, reserve changes, conversions, and transfers. Then read the deal rights alongside the math. A funding discussion becomes more useful when the participants can name both the ownership measure and the point in the transaction to which it applies.
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.
Cap Tables Explained: Build a Clear and Traceable Ownership Record
Learn how to build and reconcile a cap table, distinguish outstanding and fully diluted shares, and track grants, conversions, and ownership history.
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.