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As others have pointed out, this is impossible to determine without knowing the dilution between today and the sell date.
by zeroer 10y ago
As others have pointed out, this is impossible to determine without knowing the dilution between today and the sell date.
- edraferi 10y agoTrue, but this should be a straightforward calculation every time the cap table updates. It can be very difficult to work out the implications of preferences, ratchets, etc, but it's still just a math problem. This should be a standard report off of cap table management software. Every time the cap table changes, all current equity holders get a report showing their stake and expected payout for various liquidity events.
- rlucas 10y agoWell, except it's not straightforward, almost ever. New investment rounds dilute the common share equivalent ownership, but also add preferences and sometimes other economic rights. Also, banker fees, earnouts, etc etc. I don't disagree that it would be helpful and is a step in the right direction. But it would have to come with tons of disclaimers. And, even the best cap table management software is rather poor, and its calcs get duplicated or discarded in favor of spreadsheets done by lawyers.