Open Source Project


Startup Funding Simulator is an open-source tool designed to help entrepreneurs understand how modern financing works, especially using Safe agreements, and what dilut...


The Startup Funding Simulator is a freely accessible, community-contributed tool aimed at demystifying the financial processes involved in securing startup capital. Specifically, it educates entrepreneurs on the nuances of Safe agreements—a popular form of investment agreement that offers a simple and flexible mechanism for startups to raise funds without immediately setting a valuation. This is crucial for early-stage companies looking to grow quickly without the complexity and legal costs associated with more traditional forms of equity financing.

By allowing users to simulate various funding scenarios, the tool provides practical insights into how different financing decisions can lead to equity dilution over time. Entrepreneurs can input hypothetical rounds of financing, including Post-money Safe agreements (a form of Safe that specifies how much ownership the investor will have after the funding is provided), traditional priced equity rounds (where the company’s valuation is determined, and equity is sold at a specific price), and the granting of stock options to employees (a common incentive used by startups to attract and retain talent).

Through these simulations, the tool visually represents the impact of these financial decisions on the founder’s and early investors’ ownership percentages. This enables founders to better plan their fundraising strategies by understanding how accepting investment on certain terms, or granting equity to employees, can affect their control and the value of their stake in the company. By providing this clarity, the Startup Funding Simulator aims to empower founders with the knowledge to navigate the complex landscape of startup financing effectively.

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