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.