The Fund Equation + VC Calculator
Open VC guide with a hands-on waterfall calculator
# Investing AssistantWhat is The Fund Equation + VC Calculator?
Unpack how VCs think and decide. The Fund Equation + VC Waterfall Calculator gives founders clear insight into terms and exits. Free, open source, and evolving with your input. Read it, model your outcomes, and join us in shaping better tools for founders.
Problem
Founders struggle to understand how VCs evaluate terms and calculate potential exits due to lack of transparency in VC decision-making processes, leading to misaligned expectations and unfavorable deal structures.
Solution
A free, open-source VC waterfall calculator tool that lets founders model fundraising scenarios (e.g., liquidation preferences, dilution) and visualize financial outcomes for different exit values. Example: Input pre-money valuation, funding rounds, and exit value to see how proceeds are distributed.
Customers
Startup founders and entrepreneurs raising venture capital (particularly early-stage tech startups), ecosystem advisors, and angel investors seeking to educate portfolio companies.
Unique Features
Open-source framework allowing community contributions, integration of VC decision-making guides with actionable financial modeling, and adaptability to evolving fundraising terms.
User Comments
Demystifies VC term sheets
Saves hours on cap table calculations
Visualizes founder dilution risks
Free alternative to expensive consulting
Empowers negotiation confidence
Traction
Launched in May 2024 with 850+ upvotes on Product Hunt, 2,300+ active users within first month, and 120+ GitHub contributors to its open-source codebase.
Market Size
The global venture capital investment market reached $345 billion in 2021 (PitchBook), with 150,000+ startups raising VC annually needing financial modeling tools.
