funding-rounds-analysis

Funding Rounds Analysis

Scope

Use for round mechanics, proceeds, and dilution. For company-wide cap-table structure without round focus, use cap-table-analysis. For exit proceeds allocation, use waterfall-analysis.

Tool Workflow

1. Use rounds_list to discover rounds and the share classes associated with each round.
2. Use rounds_get_display_data only when names/IDs are enough.
3. Use rounds_get_total_raised after collecting the target round's share class IDs from rounds_list.
4. Use share_classes_list and share_classes_get_one for share-class terms and names.
5. Use cap_table_get_summary, cap_table_search_entries, securities_find, and securities_search to inspect investors, issued shares, convertibles, warrants, and stakeholder positions around the round.
6. Use valuations_list when valuation/FMV context is relevant.

Keep the same as-of date across tools when comparing pre/post or current round effects.

Round Mechanics

A priced round usually has: pre-money valuation, pre-money fully diluted share count, optional pool top-up, price per share, new primary shares issued, post-money valuation, and post-money fully diluted ownership.

Do not conflate primary and secondary transactions. Primary issuances create new shares and cash goes to the company. Secondary transfers move existing shares between stakeholders and cash goes to the seller, so they do not increase company proceeds or outstanding shares.

Founder shares issued at nil or nominal consideration are normal formation shares. SAFE and convertible instruments may affect fully diluted calculations before they convert and become shares at a priced round.

Option Pool Top-Ups

Investors often require the unissued option pool to be refreshed before closing. That top-up is typically pre-money, diluting existing holders before the new investment price is set. Use equity pool and cap-table tools to understand pool size and availability; do not infer a top-up unless round, pool, or share-class data supports it.