Compute · Assess & Decide · Analysis & Finance

Liquidation Preference vs Convert Election Calculator

The founder can predict, deterministically, what each preferred holder will choose at any exit value and the resulting proceeds split.

You receive: A pure function electionPayout(exitValue, investedAmount, liquidationMultiple, type, participationCapMultiple, preferredOwnershipFraction) -> { election (enum: take_preference|convert), preferredProceeds, commonProceeds } graded on hidden numeric cases. Assumes single preferred class, no debt, no option pool, residual to common is shared pro rata; preferred holds preferredOwnershipFraction of fully-converted shares.

Part of Pitch Investors

What's verified: STUD verifies the function reproduces the reference election and payout on hidden numeric cases under the stated single-class, debt-free, no-option-pool assumptions. STUD does NOT model multi-class stacks, option-pool dilution, debt seniority, or real-world tax (e.g. SEIS/EIS) effects.