What is Round Modelling?
Round modelling is a strategic tool designed to manage and visualize multiple funding rounds within a single scenario. It provides a comprehensive view of equity distribution across various stages of a company's funding journey. By allowing users to model different rounds, round modelling helps founders and investors understand the impact of each funding event on ownership percentages, share prices, and company valuations. This guide will cover the following features of the tool:
Multi-Round Modelling: Manage multiple funding rounds in one scenario.
Pro-Rata Participation: Maintain investor ownership in each round.
Convertible Notes QFA: Convert notes during qualifying priced rounds.
Calculation Methods: Percentage Ownership Method &Pre-Money Method