# Dilution Calculator MCP for AI Agents AI Agent Connect

> Dilution Calculator helps you model how new funding rounds affect your cap table. It predicts ownership shifts, ESOP expansion impacts, and anti-dilution adjustments during investment rounds. Perfect for founders and VCs who need to see exactly what happens to their equity before signing a term sheet.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_6Lurc9mJEMJ4oj6Zr3eNhlYeqLo7aj9SwqcwrtKc/ai-agent-connect
- **Tags:** cap-table, dilution, valuation, investment, esop, equity-modeling

## Description

The Dilution Calculator is a specialized simulation engine for founders and investors to model the impact of new funding rounds on existing equity. Imagine you're sitting in a high-stakes meeting with a lead investor. They're proposing a new funding round, and you need to know exactly how much of the company you'll actually own once the dust settles. Instead of wrestling with messy spreadsheets or guessing at percentages, you can just ask your agent to run the numbers. This Connector handles the heavy lifting of equity modeling. You can project how a new round of capital will dilute your current shares or see how a growing employee stock option pool will impact your personal stake. It even tackles the messy stuff, like calculating how anti-dilution clauses from previous rounds will kick in if you're facing a down round. Because it's part of the Vinkius catalog, you can plug it into your existing setup and get these answers in seconds. It turns a complex, error-prone manual calculation into a quick conversation. You get to focus on the deal terms while the math happens in the background.

## Tools

### simulate_option_pool_expansion
Calculates the effective dilution caused by resizing the employee stock option pool. It shows you how adding shares for new hires impacts the founders.

### calculate_round_dilution
Simulates a new investment round to show how new capital changes ownership percentages. This helps you see exactly how much of the company you'll own after the deal.

### calculate_anti_dilution_impact
Evaluates how broad-based weighted average adjustments affect your conversion prices. This is key for understanding how your shares are protected during a down round.

### get_cap_table_snapshot
Provides a clear view of the current ownership structure for all shareholders. You can use this to get a quick status check on your current equity.

## Prompt Examples

**Prompt:** 
```
What happens to my 20% stake if we raise $1M at a $9M pre-money valuation?
```

**Response:** 
```
Here is the breakdown of your ownership after that round:

| Shareholder | Current % | Post-Money % | Change |
| :--- | :--- | :--- | :--- |
| Founders | 20.0% | 16.0% | -4.0% |
| Investors | 0.0% | 10.0% | +10.0% |

The new investors will take a 10% stake. Your ownership drops by 4% absolute, which is a 20% relative dilution factor.
```

**Prompt:** 
```
Show me our current cap table.
```

**Response:** 
```
Here is the current snapshot of your ownership:

* **Founder A:** 40%
* **Founder B:** 30%
* **Angel Investor:** 20%
* **ESOP Pool:** 10%

**Total Shares Outstanding:** 1,000,000
```

**Prompt:** 
```
If we do a down round and our price drops from $2.00 to $1.50, what is the new conversion price with weighted average?
```

**Response:** 
```
Based on a broad-based weighted average calculation:

* **Old Price:** $2.00
* **New Price:** $1.50
* **New Conversion Price:** $1.74

This adjustment protects your previous investors by giving them a better conversion price than the current round's price.
```

## Capabilities

### Predict ownership shifts
See how new investment rounds change your percentage of the company.

### Model ESOP growth
Calculate how expanding an option pool affects every shareholder.

### Run anti-dilution checks
Evaluate the impact of broad-based weighted average adjustments.

### View current equity
Get a clear snapshot of your current ownership structure.

### Simulate funding scenarios
Model different pre-money valuations and investment amounts.

## Use Cases

### Predicting Series A ownership
A founder wants to know their stake after a $5M round. Ask the agent to run `calculate_round_dilution` with a $20M post-money valuation.

### Evaluating down-round protections
An investor is worried about a down round. Use `calculate_anti_dilution_impact` to see how the weighted average affects the price.

### Planning employee share pools
The HR team wants to add more shares to the ESOP. Use `simulate_option_pool_expansion` to see who gets diluted by the new pool.

### Quick cap table audits
A board member wants a status check. Ask the agent to provide a `get_cap_table_snapshot` for the current month.

## Benefits

- Stop guessing at percentages by using `calculate_round_dilution` to see exact ownership shifts before you sign anything.
- Avoid math errors in ESOP planning by using `simulate_option_pool_expansion` to see the real impact on your cap table.
- Quickly assess down-round risks using `calculate_anti_dilution_impact` to see how your conversion prices actually move.
- Keep a clean record of your equity with `get_cap_table_snapshot` so you always know the current standing.
- Run multiple what-if scenarios in seconds to see how different valuations change your personal stake.

## How It Works

The bottom line is you get accurate equity modeling without the manual spreadsheet errors.

1. Connect the Dilution Calculator MCP to your AI client via Vinkius.
2. Provide your current cap table data and the details of the proposed funding round.
3. Receive a detailed breakdown of post-money ownership and dilution factors.

## Frequently Asked Questions

**Can the Dilution Calculator MCP help me plan for a Series A?**
Yes. It lets you model the exact ownership percentages for all shareholders after a new investment round. You can see how much your stake shrinks based on different valuation inputs.

**How does the Dilution Calculator MCP handle ESOP expansions?**
It calculates the specific dilution that happens when you increase your employee stock option pool. This helps you see the impact on your own shares before you commit to a new pool size.

**Can I use the Dilution Calculator MCP to check anti-dilution?**
Yes. It specifically evaluates broad-based weighted average anti-dilution impacts. This is crucial for understanding how your shares are protected during a down round.

**Does the Dilution Calculator MCP work with my current cap table?**
You can provide your current ownership data to the Connector. It then uses that as a baseline to run what-if scenarios for future funding or share issuances.

**Is the Dilution Calculator MCP good for VC modeling?**
It's a great tool for VC analysts. You can quickly simulate how much of the company your fund will capture under different deal structures and valuations.

**What makes the Dilution Calculator MCP better than a spreadsheet?**
It removes the risk of manual formula errors. You can ask natural questions and get instant results without building complex, interconnected cells that are easy to break.

**How does the calculator handle option pool expansion?**
The `simulate_option_pool_expansion` tool calculates the additional shares required to reach a target post-money ESOP size, specifically showing the impact on founder ownership.

**Can I simulate a down round?**
Yes. By using `calculate_anti_dilution_impact`, you can evaluate how a Broad-Based Weighted Average anti-dilution clause will adjust conversion prices when the new share price is lower than previous rounds.

**What information do I need for a round simulation?**
To use `calculate_round_dilution`, you need the new investment amount and the pre-money valuation. You can also optionally include a target option pool expansion percentage.