Reader Dave Lavinsky has created a nifty calculator for entrepreneurs wanting to know how their seed and subsequent rounds affect their ownership in a start-up.
He calculates the seed round on the ‘QuickStart’ formula popularized by Charles River Ventures, which we wrote about last week. CRV is writing small checks in return to start-ups in exchange for getting a discount on an investment in a company’s first round.
The calculator allows up to 5 rounds of financing and shows the equity that the management team, CRV (in this case), and other investors get. You can view the calculator here.