ESOP Dilution Calculator Tool

Free

Free startup dilution calculator to understand the impact of dilution after ESOP and venture capital investments.

  • Simple Excel sheet
  • See effect on ESOP
  • Learn about dilution
  • Easy to play with
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A Few People Like You Recommend You Check This Out

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Amy Kedrowsky

Student at Law
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I just wanted to send you are thank you for the esop dilution model on the 50 folds website. It was svery helpful to me and the accompanying video you made explained everything so simply!

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What

What Is an ESOP Dilution Calculator?

No one was born knowing everything let alone startup dilution, you have to learn at some point and in some way. How you make money in a startup is one such point. It sounds easy though, right? You startup, get a bit of cash and then sell for a chunk of change and start driving a Tesla. Only it’s a bit more complicated than that.

You start owning the whole of your company, and if you bootstrap and don’t give any shares to the staff you will continue to own all of it. But that’s not normal for most tech startups these days, since, along the way other people get a cut of your company and so upside when you hopefully exit. Others getting a cut is called dilution, and it’s what we are going to get into in detail. Only, we aren’t going to do the basic version, we’re going to learn about the impact of ESOPs (Employee Share Ownership Plan) on this ‘dilution’ too. In this way, you can understand how your staff get rich too.

who

Who Needs a Startup Dilution Calculator Tool?

Everyone in startup-related land needs to know about this topic. So whether you are a founder, investor or advisor, why not have a little play with this!

Startup Founders

Any startup is a huge pain in the rear! There is just so much to learn and figure out!

All my tools are designed to help you with one specific thing you can apply to either action on, or build on your learnings.

Even if you don’t need the tool now, you won’t waste your time reading the supporting blog (or watching a video if I made one) and then playing with the tool for 20 minutes.

You’ll be able to start getting some latent learnings that could help you understand the topic when it is a focus.

If the tool does help you now, then fantastic! Let me know about it over email or leave a comment on the page!

Investors

Investors are meant to know everything! The thing is, we both know that you don’t and you are always learning!

All my tools will help you to build on your learnings (for free) so you can be more proficient in your job and support founders better.

If you don’t understand founder needs, how are you going to do the ‘value add’ you keep talking about!

Startup Advisors

If you are advising founders, then you know you can never stop learning! Regardless of the niche you focus on, it is always useful to be able to touch on a topic.

My free tools will help you to understand a topic you don’t know a Scooby Clue about or something you want to build knowledge on.

Note: These aren’t for sale or to white-label.

Details

What Does the Tool Look Like?

It’s a very simple model so there is one image. I might make it more fancy in future.

Need

Why Do You Need an ESOP Dilution Calculator?

  1. 1

    Understand the Effect of Dilution

    • Dilution happens like death and taxes
    • You need to know how raising money affects your ownership
  2. 2

    See How ESOP Sizes Change

    • You make an ESOP pool, but it will shrink
    • Investors will keep asking you to make it larger each time you raise
  3. 3

    Investors Will Expect You to Understand Raising

    • This is the absolutely most basic model you need to start with
    • Without understanding dilution, you can’t learn more advanced topics

features

What Can the Model Do?

These are some of the features in the model.

Track Dilution

See what happens round by round

  • Start
  • Do a seed, then series-A and B
  • See how the target ESOP changes pre and post round

Play With Basic Assumptions

This is a simple model

  • Play around with ownership
  • Set ESOP % pre rounds

Need

Why Is My Tool Worth Getting

  1. 1

    I Make Cool Things (and am capable)

    • There is a lot of blah around by people who aren’t terribly good at Excel/PowerPoint etc
    • You’ll see the attention to detail and actual thought put into what I gift you (so you aren’t wasting your time)
  2. 2

    My Free Tools Are Better Than What Some Charge For

    • I only made tools because I couldn’t find anything I would use myself
    • Even if you don’t ‘actually need the tool’, the point is to teach you concepts you can apply
  3. 3

    I Don’t Have a Hardcore Marketing Funnel

    • I make tools to actually help founders
    • You aren’t going to be hounded with emails to get you to buy things
    • Whilst I do sell some stuff, seeing the quality I give for free is way better marketing than using fancy words to convince you

video time

Watch a Video On the Tool

Here’s a video for you to hang out with me and do some math!

read more

Read the Full Blog

This is a pretty page I have made so downloading tools is cleaner and simpler for you. I’ve moved blog details to blog(s). If you would like to read more, click on!

Guide

Other tools

Other Related Tools

You’re busy, so there are other great tools that I’ve made that might be of use to you. Here are some you can check out if you would like.

Professional Cap Table Model

The most detailed Excel model to to track financing rounds that you can buy on the internet so you know who owns what of your company. The tool is also great for lawyers to manage clients as it has the functionality to track all the complex changes you need to make and be auditable.

Learn more

ESOP Model

You can't afford top talent with just cash, so you need to incentivise them with options. What the heck does a structure look like? This is literally the only ESOP model on the internet! You will decide on a fixed structure and you will be able to apply it to every hire so every evergreen, promotion, and performance grants are defendable to keep everyone on board that you are always fair.

Learn more

Access

Get the ESOP Dilution Calculator Tool For Free

Fill in your details and it will be emailed to you.

I’m not sketchy, so here is everything you need to know just in case!

  • It is automatically emailed to you!
  • I’ll send you some emails about startup/investing after
  • You can unsubscribe whenever you want
  • Your data is never sold! I’m not organised to even do that lol
  • You agree to all T&C legal stuff (to cover my ass)

FAQs

Check the FAQs if you are having issues. Don’t message me if “I can’t download the file”.

Is this free?

Yes.

How do I download?

Fill in your name and email in the submission form and it will be emailed to you.

I didn't receive the email?

My (automated) system works. You’ve made a basic mistake.

  • Check you input your email accurately
  • Check your spam folder (Whitelist me if you found the email in spam)
Can I get consulting to use the file?

Yes. You can book a consulting call here:

Book a consulting call

I have feedback to improve

I’d love feedback from you!

You can reach out to me through the contact page

Contact

How do I open the file?

When you press download in an email from me, it normally saves to your Downloads folder.

So go there first to find the file.

I normally have to ZIP the file so it will work with SaaS automation systems.

So get WinZip, WinRAR, or use whatever Mac/PC offers these days. Unzip the file (Right click and press “uncompress” etc). If you don’t know how to do this, then use Google.

Once you uncompress, the ZIP file will remain, and you will see a new file (sort the download folder by date modified if confused).

I assure you that everything I provide works, so if you can’t access it, it’s a ‘you’ problem.

Can I sell / share your tools?

No.

You can share a link to this page, which would be much appreciated!

Can I share your tools on social media?

Please share the link to this page. It would be super-appreciated, but only if you like it!

If you don’t like it, then leave a comment or shoot me an email first so I can take your feedback on board first and see if I can improve!

Reading

Looking For Some Recommended Reading?

Here are some blogs you can check out related to this topic:

Pre-Money Valuation

What is Pre-Money Valuation? What is the formula, and why it is important

Read

Founder vs Board

What is the difference between a founder and board of directors?

Read
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