Angel Investing Math: SAFEs, Dilution & Power-Law Portfolios
The numbers behind early-stage deals: pre- and post-money, SAFEs and convertible notes with caps and discounts, dilution and the option pool shuffle, pro-rata follow-ons, preference waterfalls, power-law portfolio odds and XIRR, every cell checked as you go. Fictional start-ups, educational only, not investment advice.
The first lesson is free — no account needed.
About this course
An angel investing course that works through the numbers behind early-stage deals in a spreadsheet, on fictional start-ups, for new angel investors, founders and finance students. You turn a seed term sheet into the post-money valuation, the price per share and your ownership, convert SAFEs with different valuation caps and discounts and see which term wins, accrue interest on a convertible note and convert it at the lower price, follow your stake through dilution and the option pool shuffle, price your pro-rata right in later rounds, split exit values with a 1x non-participating preference waterfall, calculate how portfolio size changes the chance of holding one big winner under the power law and measure a ten-year portfolio by cash multiple and XIRR. Fictional companies, educational only, not investment advice. The first lab is free.
Lessons
- Pre-Money, Post-Money, Price per Share & Your OwnershipFree
- SAFE Conversion: Valuation Cap vs Discount (the MIN Price) Pro
- Convertible Notes: Accrued Interest, Cap, Discount & Shares Pro
- Dilution Across Rounds & the Option Pool Shuffle Pro
- Pro-Rata Rights & the Cost of Following On Pro
- Exit Waterfall: 1x Non-Participating Preferences (Chart) Pro
- Power Law: Portfolio Size vs the Chance of a Big Winner (Chart) Pro
- Portfolio Multiple & XIRR with Uneven Exits Pro