Your share changes as new shares are issued.
One illustrative issuance path, on a fully diluted basis.
Issued employee shares74.3%
YouSeedEmployeesSeries ASeries B
Your share count stays fixed in this illustration while the total grows. The final 52% ownership is used in the next scene. This is an assumed path, not a typical funding history. More founders, pool increases or later rounds can change this path.
Investor terms affect your proceeds.
Sale value before debt and fees$50.00M
Less fees and company debt−$5.30M
Equal-ranking, 1× non-participating preferences. Both investor classes take their preference in this example.
Series B preference payout$12.00M
Series A preference payout$6.00M
Common-shareholder pool$26.70M
Your gross share of the common pool$19.83M
52% ownership.
39.7% of sale value.
Seed common receives $3.05M; issued employee common receives $3.81M. Unissued option reserves do not receive proceeds in this example.
Compare your outcome with your target.
Your gross founder allocation$19.83M
Tax, excluded rollover & escrow adjustments−$8.70M
Modeled funding capital$11.13M
Calculated funding target$7.71M
Modeled surplus$3.42M
Net cash at close $9.56MExpected net escrow PV $1.57MEarnout $0.00MRetained equity, net PV $2.80M
Funding capital includes net cash and the expected net present value of escrow. The $4M retained-equity position is valued separately and excluded from this funding comparison. All values use the same documented scenario and are rounded for display.
Scenario and calculation assumptions
Hypothetical Canadian-dollar example. Company sale value $50M, fees $2.5M and company debt $2.8M leave $44.7M. Individual founder ownership 52%, seed common 8%, issued employee common 10%, Series A 12% and Series B 18%. A and B rank equally, have 1× non-participating claims of $6M and $12M, and both prefer those claims to conversion. The remaining $26.7M common pool gives the individual founder $19.834286M before personal tax. Employee shares are assumed issued and payout-eligible; outstanding options and unallocated reserves are not modeled.
The personal share sale assumes Ontario residence, the tool’s 2026 tax model, 50% capital-gains inclusion, a 53.53% top ordinary-income rate and no LCGE applied. Founder cost base is $5,200. Company-wide escrow is $5M, allocated pro rata to gross proceeds, with an 80% release assumption after 18 months and a 2.5% short-term discount rate. No earnout or seller note. The founder retains $4M of equity. Its separate net present-value illustration assumes 14% growth for five years, a 15% discount rate and zero tax basis; it is excluded from funding capital.
Funding needs start at age 54: $260,000 annual core spending through age 90 inclusive (37 payments), $60,000 travel for 12 years, and $50,000 giving for 15 years beginning in year five. Assumed after-tax advisory income is $125,000 in years one through five; spouse income is $70,000 for eight years. Future CPP/OAS is excluded. The plan assumes a 6% nominal return, 2.5% inflation and a 6% blended future-withdrawal tax allowance. One-time needs include $950,000 debt payoff, a $1.5M purchase in year four and $500,000 for another venture in year two. Tax-adjusted existing-asset credits total $1.105174M.
Calculated target: $6.088038M lifestyle funding including the withdrawal allowance, plus $2.729011M present-value one-time needs, less $1.105174M asset credits, equals $7.711875M. Modeled funding capital is $9.557115M cash at close plus $1.573056M expected net present value of escrow, or $11.130171M. The modeled surplus is $3.418296M. Tax and transaction treatment require individual review; returns and future receipts are assumptions, not promises. Displayed figures are rounded.