Ben Woodhead Deputy editor - digital

Ben Woodhead is deputy editor - digital at the Financial Review Group. He writes on business, technology, politics and the economy and can be found on BRW, The Australian Financial Review and Smart Investor.

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Equity calculator for start-ups

Published 19 September 2012 10:33, Updated 20 September 2012 04:38

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Equity calculator for start-ups

SmartAsset’s Startup Economics calculator. Source: SmartAsset

For first time entrepreneurs, the process of dividing up equity in their business with founders, investors and employees can be a daunting one. Thankfully, Y Combinator-backed start-up SmartAsset has cooked up a Startup Economics calculator to help shed some light on this.

Profiled in TechCrunch this week, the calculator takes people through the various events that can trigger divisions of equity.

“Some of this, of course, is fantasy math. When you’re raising a seed round or a Series A, you don’t know when or if you’re going to be acquired. But that acquisition is when questions like valuation really come into play, and when all that negotiating you’ve been doing hopefully pays off,” TechCrunch’s Anthony Ha writes.

“SmartAsset helps you understand that ultimate financial outcome, displaying how much each party would make off a given deal, and, more importantly, how changing the terms of the deal would affect how much you make.”

The calculator can be found here.