Valuation
Valuation supplies the economic basis used by applicable contracts and rounds. A round valuation can serve several contracts; a contract-specific valuation overrides it only for that contract.
Dilution
Dilution describes the reduction in an existing holder’s percentage when the ownership base grows. Eqdeal can mark a contract, an individual investor, an option pool, or an option offer as non-dilutable so future issuances automatically top up its shares or reserves to preserve its percentage. This protection is commonly applied to positions that already hold issued shares, not only to positions that have not issued yet.
Before relying on a percentage
- Confirm whether the figure is pre-money, post-money, issued, or fully diluted.
- Confirm whether a contract inherits round valuation or has its own valuation.
- Confirm which reserves, pools, or projected instruments are included.
How valuation precedence works
Use the round valuation as the shared basis unless a specific contract records its own valuation. That contract-level value overrides the round only for the applicable contract; it must not silently change the basis used by the other contracts in the round.
Explain a percentage change
Identify the old and new ownership bases, the event that changed the denominator, and whether the holder’s underlying quantity changed. New financing, a larger option pool, or a conversion can reduce a percentage without transferring or cancelling the existing holder’s shares.