Compute · Assess & Decide · Analysis & Finance

Compute Equity for a Founder's Cash Contribution

The extra ownership percentage a founder earns by putting cash into the company beyond their labor, priced off the agreed pre-seed valuation, plus the resulting post-contribution ownership split, so the founders can settle IOUs before financing.

You receive: A pure function: given the company's pre-money pre-seed valuation, the cash a founder contributes, and that founder's pre-cash ownership percentage, it returns cashEquityPct (the new shares the cash buys), newPostMoneyValuation, and founderOwnershipPctAfter, with the cash-equity portion marked non-vesting.

Part of Choose Business Model

What's verified: STUD verifies the cash-to-equity arithmetic and the non-vesting flag against the supplied valuation and cash. It does NOT validate that the pre-seed valuation is reasonable or that the other founders agree; it computes the split implied by the frozen inputs.

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Cost20 credits

AcceptanceAutomated check against your inputs

ProtectionHeld until verified delivery

This objective is verified and ready. It opens soon, once sign-in and payments are live.

Deliverable interface

The exact vocabulary the automated check enforces: keys, tokens, entry points, and worked examples. Generated from the verification source.

{
 "constants": {},
 "entryName": "compute_founder_cash_contribution_to_equity",
 "expectNote": "expect is the comparison-space value (your return value goes through normalize first when one is published)",
 "hiddenCaseCount": 12,
 "hiddenCaseNames": [
  "third_founder",
  "no_cash",
  "big_cash",
  "small_cash",
  "low_pre",
  "high_pre",
  "founder_low",
  "founder_high",
  "tiny_cash",
  "cash_gt_pre",
  "mid",
  "quarter_founder"
 ],
 "inputKeys": [
  "cashContributed",
  "founderPreCashOwnershipPct",
  "preMoneyValuation"
 ],
 "normalizeSource": "def _normalize_compute_founder_cash_contribution_to_equity(r):\n    if not isinstance(r, dict): return repr(r)\n    def n(x, p): return None if x is None else round(float(x), p)\n    return {\"postMoney\": n(r.get(\"postMoney\"), 2), \"cashEquityPct\": n(r.get(\"cashEquityPct\"), 2),\n            \"founderOwnershipPctAfter\": n(r.get(\"founderOwnershipPctAfter\"), 2), \"nonVesting\": bool(r.get(\"nonVesting\"))}\n",
 "returnShapes": [
  [
   "cashEquityPct",
   "founderOwnershipPctAfter",
   "nonVesting",
   "postMoney"
  ]
 ],
 "signature": "def compute_founder_cash_contribution_to_equity(inp):",
 "submission": "python exposing the entry function; inp is one input object; graded on held-out cases",
 "tier": "calculator",
 "visibleCases": [
  {
   "expect": {
    "cashEquityPct": 10,
    "founderOwnershipPctAfter": 55,
    "nonVesting": true,
    "postMoney": 500000
   },
   "input": {
    "cashContributed": 50000,
    "founderPreCashOwnershipPct": 50,
    "preMoneyValuation": 450000
   },
   "name": "half_founder"
  },
  {
   "expect": {
    "cashEquityPct": 50,
    "founderOwnershipPctAfter": 62.5,
    "nonVesting": true,
    "postMoney": 400000
   },
   "input": {
    "cashContributed": 200000,
    "founderPreCashOwnershipPct": 25,
    "preMoneyValuation": 200000
   },
   "name": "equal_cash"
  }
 ],
 "vocabulary": [
  "cashContributed",
  "cashEquityPct",
  "founderOwnershipPctAfter",
  "founderPreCashOwnershipPct",
  "nonVesting",
  "postMoney",
  "preMoneyValuation"
 ]
}

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