# Dilution Calculator MCP for AI Agents MCP

> The Dilution Calculator simulates how new money impacts ownership structure. It lets founders and investors accurately model cap table changes, predicting dilution from funding rounds or ESOP growth. You can evaluate anti-dilution adjustments across various investment scenarios, giving you a crystal clear view of who owns what after major capital events.

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

## Description

This MCP is built for people who need to know the hard numbers behind company ownership. It simulates complex financial changes that happen during fundraising and organizational growth. For instance, if your startup closes a new round of funding, this tool predicts exactly how much existing shares will be diluted. You can also model what happens when you expand your employee stock option pool (ESOP) or if the market forces an anti-dilution adjustment. It provides a clear view of your cap table evolution.

Running these complex calculations used to mean spending hours wrestling with giant spreadsheets that always contained errors. Now, your AI client can handle it instantly. This MCP lets you run multiple scenarios—from standard funding rounds to down rounds—in minutes. You access the full power of this engine through Vinkius, making advanced equity modeling available to anyone who needs accurate financial foresight.

## Tools

### calculate_round_dilution
Simulates the immediate dilution effect when a new investment round occurs.

### calculate_anti_dilution_impact
Evaluates ownership changes using the Broad-Based Weighted Average anti-dilution method.

### get_cap_table_snapshot
Provides an instant overview of every current shareholder's equity stake in the company.

### simulate_option_pool_expansion
Calculates how much existing ownership is diluted when the Employee Stock Option Pool (ESOP) grows.

## Prompt Examples

**Prompt:** 
```
What is our current ownership structure?
```

**Response:** 
```
**Current Cap Table Snapshot**

| Shareholder | Ownership (%) |
| :--- | :---: |
| Founders (A, B) | 70% |
| Employees/ESOP | 20% |
| Seed Investors | 10% |

*Total Shares Outstanding: 10,000,000*

This view is based on the most recent grant date.
```

**Prompt:** 
```
If we raise $4M at a $25M pre-money valuation?
```

**Response:** 
```
*Funding Round Simulation Results*

* **Post-Money Valuation:** $29,000,000*
* **New Investor Stake:** 13.8%*
* **Existing Shareholder Dilution Factor:** 0.864*

The dilution is manageable for the existing team, but we need to account for anti-dilution protection.
```

**Prompt:** 
```
Calculate the effect of a down round adjustment?
```

**Response:** 
```
*Anti-Dilution Impact Analysis (Broad-Based Weighted Average)*

* **Previous Conversion Price:** $1.50*
* **New Conversion Price:** $1.20*
* **Calculated Adjusted Price:** $1.38*
* **Adjustment Ratio:** 0.95*

This means the previous investors are protected, resulting in a weighted average price adjustment.
```

## Capabilities

### Get Current Ownership Structure
Retrieve a current, definitive snapshot of all outstanding shares and shareholder ownership percentages.

### Predict Funding Round Dilution
Simulate how issuing new capital will dilute existing shareholders based on pre-money valuations and investment amounts.

### Model Option Pool Changes
Calculate the effective dilution impact that results from resizing or expanding the ESOP.

### Evaluate Anti-Dilution Impact
Determine the complex effect of weighted average anti-dilution clauses during a down round investment.

## Use Cases

### Figuring out post-seed round ownership
A founder asks: 'If we raise $5M on a $20M pre-money valuation, how much do I own afterward?' The agent runs calculate_round_dilution and returns the new percentage split for all founders.

### Adjusting the employee option pool
A CFO asks: 'If we want to grow our team by 15 people, what is the resulting dilution?' The agent uses simulate_option_pool_expansion and gives a precise ownership cost.

### Analyzing poor funding market conditions
A VC analyst asks: 'What's the impact on our founders if we have to accept a down round with these terms?' The agent runs calculate_anti_dilution_impact, showing the exact adjustment ratio.

### Preparing for board meetings
A startup executive asks: 'What is our current ownership structure as of today?' The agent executes get_cap_table_snapshot and provides a clean, verifiable list of all owners and their stakes.

## Benefits

- Know exactly what happens when you raise money. Use calculate_round_dilution to predict the exact dilution factor, preventing surprises during board meetings.
- Manage employee equity accurately. Simulate option pool expansion helps you size your ESOP correctly without accidentally giving away too much ownership.
- Defend against down rounds. Calculate anti-dilution impact shows precisely how complex protective provisions affect founder and investor shares.
- Get a current financial picture instantly. The get_cap_table_snapshot tool provides an undeniable, up-to-the-minute view of all shareholder ownership.
- Run comparative scenarios quickly. You can test multiple funding assumptions in sequence to see the full range of dilution outcomes.

## How It Works

The bottom line is that it turns complex financial theory into actionable numbers you can trust.

1. You feed your AI client key financial inputs, such as current capitalization data, proposed funding amounts, and valuation metrics.
2. The MCP processes these variables through specialized formulas to model the resulting changes in equity ownership and share counts.
3. Your agent returns a clear, calculated report showing the updated cap table, detailing the new ownership percentages and dilution factors.

## Frequently Asked Questions

**How does the Dilution Calculator handle ESOP changes?**
It calculates exactly how much ownership is diluted when you expand your employee option pool. This prevents you from over-reserving shares and ensures founder equity remains protected during growth stages.

**Can I predict ownership after a down round?**
Yes, the calculator runs complex anti-dilution simulations. It provides an accurate figure of your adjusted ownership stake even when market conditions force unfavorable terms.

**What is the best way to see my current equity split?**
You use the get_cap_table_snapshot function within the Dilution Calculator. It gives a single, clear view of every shareholder's stake and total shares outstanding right now.

**What if we raise money at a new valuation?**
You run a round dilution simulation using calculate_round_dilution. This shows you the immediate ownership shift, telling you exactly what percentage of the company new investors will take and how much existing equity is diluted.

**Does this tool account for anti-dilution protection?**
Absolutely. The Dilution Calculator uses specialized formulas to calculate the Broad-Based Weighted Average impact, giving you a legally sound estimate of your ownership adjustments.