Equity dilution across funding rounds

Post-money valuation = pre-money valuation + investment. Investor share = investment / post-money.

Seed round

$$\text{Post-money} = 2{,}00{,}00{,}000 + 50{,}00{,}000 = \text{Rs } 2{,}50{,}00{,}000$$ $$\text{Angel share} = \frac{50{,}00{,}000}{2{,}50{,}00{,}000} = 20\%$$

Founders keep $100 - 20 = 80\%$.

Series A round

$$\text{Post-money} = 4{,}50{,}00{,}000 + 1{,}50{,}00{,}000 = \text{Rs } 6{,}00{,}00{,}000$$ $$\text{VC share} = \frac{1{,}50{,}00{,}000}{6{,}00{,}00{,}000} = 25\%$$

Existing holders are diluted to 75% of their earlier share:

$$\text{Founders} = 80\% \times 0.75 = 60\%$$ $$\text{Angel} = 20\% \times 0.75 = 15\%$$

Cap table after Series A

The angel's stake value rose from Rs 50 lakh to Rs 90 lakh even though the percentage fell, because valuation grew faster than dilution. A rule of thumb: sell 15-25% per round to keep control.

Answer: After seed: post-money Rs 2.5 crore, founders 80%, angel 20%. After Series A: post-money Rs 6 crore, founders 60%, angel 15%, VC 25%.