Equity Dilution Modeler
Visualize the impact of management option pools and subsequent funding rounds on LP equity.
Final Diluted Ownership
The Dilution Drag
Co-investors often focus heavily on the entry valuation but fail to model the drag created by management incentive plans (MIPs) and structural dilution from future capital raises.
A 20% entry stake can easily compress to 15% before exit if anti-dilution protections and pro-rata participation rights are not aggressively negotiated in the co-investment side letter.