venture-capital.wiki
Venture financing - terms, mechanics, and the arithmetic

Waterfall calculator

Exit proceeds distributed across a preferred stack, with each series electing preference or conversion, whichever pays more. Every input is encoded in the URL.

Preferred stack

SeriesInvested MultipleType CapOwnership %

Distribution

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URL parameters

Each series in stack is invested:multiple:type:ownership, with an optional cap for capped participating written as cp3. Ownership is a percentage. Order is oldest series first. Everything computes in the browser.

ParameterMeaningExample
stackPreferred series, oldest first10000000:1:np:20
exitTotal exit proceeds100000000
senioritypari or stackedpari

Types: np non-participating, fp full participating, cp<n> participating capped at n times invested.

Two series, a 1x non-participating seed and a 1x participating A, at a 100,000,000 exit:
https://venture-capital.wiki/calc/?stack=2000000:1:np:12,10000000:1:fp:20&exit=100000000

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A simplified model. It ignores transaction expenses, escrow and holdback, option exercise proceeds, accrued or cumulative dividends, management carve-outs, and any series-specific consent that would alter the outcome. Real waterfalls are governed by the charter, not by a formula. See liquidation preferences.

Reference information only. Not legal, tax, or investment advice.