Model how a priced funding round changes ownership

Set the assumptions and their units

Begin with 1,000,000 common shares held by Founder A, no treasury shares, no options and equal economic rights. The selected pricing basis is Fully Diluted; here it equals Basic because no additional instruments are included. The opening ownership date and funding date are 1 January 2026.

In an EURk display, enter pre-money 4,000 and investment 1,000. These mean EUR 4,000,000 and EUR 1,000,000. Price per share remains EUR 4 per individual share. Do not divide 4,000 EURk by 1,000,000 shares and label the answer EUR 0.004.

The pre-money value is a pricing assumption, not a conclusion that the company is fairly valued. If the quotation is ambiguous, resolve pre-money versus post-money before configuring the transaction.

Follow the native pricing and ownership bridge

Issue price = EUR 4,000,000 / 1,000,000 pricing shares = EUR 4. New shares = EUR 1,000,000 / EUR 4 = 250,000. Closing shares = 1,000,000 + 250,000 = 1,250,000.

The founder retains 1,000,000 shares and moves from 100% to 80%. The new investor owns 250,000 / 1,250,000 = 20%. The founder loses 20 percentage points and 20% of the opening proportional stake; neither statement means that 200,000 founder shares were transferred.

Post-money is 5,000 EURk in this simple cash-financed round. The transaction preview can show cash-adjusted ownership value, but its cash bridge does not automatically populate the operating Model cash-flow statement.

If the investor already owns shares, include them once

Keep the same 1,000,000 opening shares, but allocate 700,000 to Founder A and 300,000 to Investor A. The same investor contributes the new EUR 1m and receives 250,000 additional shares at EUR 4.

Investor A now owns (300,000 + 250,000) / 1,250,000 = 44%, while Founder A owns 56%. The round still issues 250,000 shares. The new investment’s 20% of the closing share count is not the existing investor’s total closing stake.

Review before applying the closing Cap Table

1. Download the new-investor round or the existing-investor variant and intentionally import the file.
2. Open Ownership → Equity Transactions & Dilution. Inspect the opening Cap Table, selected recipient, pre-money assumption, investment and pricing basis.
3. Review the transaction output and closing Cap Table. A zero investment is a zero-change case; missing or zero pre-money cannot produce an implicit positive issue price. Conflicting explicit price and pre-money inputs require correction.
4. Use Review closing Cap Table for application before Apply closing shares to Cap Table. Apply transfers the closing ownership ledger into the opening state and locks the applied steps; Undo restores the application. It does not execute a real financing or write the cash proceeds across Model statements.

Extend only with explicit transaction assumptions

Adding a pool changes the pricing denominator and can change who bears dilution. The option pool timing case isolates that question. Fees, secondary sales and unequal rights are not hidden inside the 20% shortcut shown here.

The fixture uses an ordinary priced common-share issuance. It does not calculate SAFE conversion, liquidation preferences or tax treatment. For exact input behavior, see funding rounds, equity issuance and Apply and Undo.