The Charles River Ventures Quickstart Calculator
(Updated: See comment from Dave Lavinsky below for an update on a minor flaw that has been fixed, plus some helpful context about some other things the calculator does not take into account.)
Reader Dave Lavinsky has created a nifty calculator for entrepreneurs wanting to know how their seed and subsequent rounds affect their ownership in a start-up.
He calculates the seed round on the “QuickStart” formula popularized by Charles River Ventures, which we wrote about last week. CRV is writing small checks in return to start-ups in exchange for getting a discount on an investment in a company’s first round.
The calculator allows up to 5 rounds of financing and shows the equity that the management team, CRV (in this case), and other investors get. You can view the calculator here.
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About the Author, Matt Marshall
Matt launched VentureBeat in September of 2006, with the realization that no one else was covering the entrepreneurial and tech innovation scene with the velocity or depth that he was. Prior to founding VentureBeat, he covered venture capital for the San Jose Mercury News from 2001 to 2006. In 2002, Matt was awarded "Journalist of the Year" by the Northern California Society of Professional Journalists. Prior to working at the Merc, he was a correspondent for the Wall Street Journal in Bonn, Germany from 1995 to 1998, and a writer for the Washington Post in 1994. Matt holds a PhD in Government and an MA in German and European Studies from Georgetown University. In addition to VentureBeat, Matt is also the Executive Producer of DEMO, the leading launchpad event for emerging technologies.
