I've forwarded this tool by SmartAsset to many founders to calculate their long term dilution, but Carta's looks cleaner and easier to use. cc @vedika_jain
Problem:
Many founders don’t fully understand the terms or potential impact of notes or SAFEs until they convert in a priced round. These impacts—such as additional dilution to a founder—can be material, and unfortunately at that point their conversion terms are generally set in stone.
Solution:
While notes and SAFEs can be a great solution for founders, it’s important to understand the potential future impact before fundraising. That’s why we’re thrilled to debut the Carta SAFE Calculator here: https://safes.carta.com/?utm_cam...
Our SAFE Calculator will help you understand the potential dilutive impact of pre-money SAFEs, post-money SAFEs (aka YC SAFEs), and notes once they convert in a future priced round. You can set up your model in seconds and run as many scenarios as you’d like—all you need are a few inputs:
- A few numbers from your current cap table, including your current holdings and the company’s current fully diluted share total
- Any number of notes or SAFEs (in any mix you like)
- Figures for a prospective future fundraise
From there, the calculator will reveal a range of outcomes, modeling how ownership in your company may be distributed across a range of priced round valuations.
Try the free Carta SAFE Calculator here: https://safes.carta.com/?utm_cam...
And if you’d like similar free tools and more, sign up for CARTA LAUNCH here: https://carta.com/private-compan...
(Just learning about SAFEs for startup fundraising? Watch our new explainer video here: )
This is extremely useful and best-in-class for dilution calculation from my POV. Especially the ability to see dilution on an individual founder level as well as overall.
I’ve been a big fan of Carta for a while, and seeing them continue to add great features like this leaves me a very happy customer (with a pretty huge NPS 😆). Keep up the great work!
I just finished watching a video from Y Combinator where Kirsty Nathoo was talking about dilution and I was thinking someone should invent something to help founders. This product seems like a great solution!
@jack_davis7 thanks for sharing! YC's team has given us a lot of great feedback on this tool. You can even create and issue a YC post-money Safe directly on Carta.
Product Hunt