Modeling an equity round to see how ownership changes. Enter the following fields on Pulley's modeling tool:
Total New Money: Most equity notes are described as raising $X on $Y pre-money. X refers to the total amount of money taken in the round, and includes the lead investor and the pro-rata from existing investors.
Pre-money valuation: Valuation before the new money. Note that money raised through the existing SAFEs should be included in the pre-money valuation.
Unallocated Option Pool % (After equity Round): Size of equity plan after the equity round. This is not the amount the equity plan will increase by, but Pulley will automatically calculate how many shares need to be issued to meet the equity plan size.
Closing Date: The date the round closes. This is most relevant for Convertible Notes, because the interest accrual in the model will calculate up to the Closing Date.
The amount of dilution from an equity round is simple New Money / (New Money + Pre-money Valuation) and Increase in the Option Pool. Ex: Acme incorporated raises $5m on $15m pre-money. Their existing option pool accounts for 4% of the shares. Their dilution after the equity round is approximately 25% ($5m / $20m) + 6% (option pool.
