# Option Pool Simulator MCP MCP

> Option Pool Shuffle Simulator calculates how much equity dilution your company loses based on when you negotiate your employee option pool (ESOP). It determines if structuring the ESOP pre-money or post-money changes your founder ownership percentage. Use it to quantify the true cost of negotiation tactics in any funding round.

## Overview
- **Category:** finance
- **Price:** Free
- **Tags:** dilution, equity, vc, esop, fundraising, cap-table

## Description

When fundraising, the conversation often gets lost in valuation multiples and cap table details. But there’s a hidden factor that can drastically cut into founder equity: the timing of the option pool. This MCP helps you model exactly how much ownership is sacrificed when ESOP negotiation happens after money closes versus agreeing to it upfront. You plug in your pre-money valuation, investment amount, and desired pool size. The simulator runs two distinct models for you—one assuming the pool exists before investors get paid, and one assuming it's carved out afterward. By running these numbers side-by-side, you don’t just guess; you calculate the precise percentage drop in ownership value caused by that timing disagreement. Finding this delta is key to walking into a negotiation knowing your walkaway number. Accessing this kind of detailed financial modeling through Vinkius makes complex diligence work simple for your agent.

## Tools

### compute_post_money_scenario
Calculates your company's ownership percentage if the option pool is created after an investment closes.

### compare_shuffle_impact
Compares pre-money versus post-money scenarios to quantify the exact cost of structuring the option pool late in negotiations.

### compute_pre_money_scenario
Calculates your company's ownership percentage if the option pool is established before an investment closes.

## Prompt Examples

**Prompt:** 
```
Calculate the ownership if I have a $5M pre-money valuation, a $2M investment, and want a 10% option pool.
```

**Response:** 
```
In the pre-money scenario, your post-money valuation is $7M. The founders will hold approximately 64.29% of the company after accounting for both the investor's stake and the 10% option pool.
```

**Prompt:** 
```
What happens to my ownership if the investor insists on a post-money option pool?
```

**Response:** 
```
In the post-money scenario, the dilution is higher for founders. The tool shows that your ownership percentage decreases because the expansion of the pool occurs after the investment, protecting the investor's stake.
```

**Prompt:** 
```
Compare the impact of a $1M loss in equity value.
```

**Response:** 
```
The comparison reveals that the 'shuffle' results in a specific percentage point delta and a measurable monetary loss based on your company's valuation, which you can use as leverage in negotiations.
```

## Capabilities

### Quantify Dilution Loss
Determines the exact monetary and percentage loss in ownership caused by option pool negotiation timing.

### Model Pre-Money Equity Stakes
Calculates your company's equity stake assuming the option pool is established before any new capital comes in.

### Model Post-Money Equity Stakes
Calculates your company's equity stake assuming the option pool is funded after the investment closes.

### Compare Valuation Scenarios
Runs both pre-money and post-money models simultaneously to reveal the hidden 'shuffle' cost.

## Use Cases

### The Board Meeting Showdown
A founder needs to know if accepting a post-money option pool is worth it. They run compute_pre_money_scenario and then compare the result using compare_shuffle_impact against the post-money model, realizing they're giving up 3% more than they thought.

### Evaluating Investor Proposals
A CFO receives a term sheet that specifies ESOP creation after funding. They run compute_post_money_scenario to visualize the dilution and use the output against their pre-money baseline to calculate the exact cost increase.

### Preparing for Due Diligence
A finance team prepares a cap table deck. Instead of using generic estimates, they run compute_pre_money_scenario first to establish a conservative ownership floor that must be protected during the pitch.

## Benefits

- Know your negotiation limits. Using compare_shuffle_impact immediately reveals the percentage point delta, giving you concrete data to push back against unfavorable terms.
- Model both sides of the deal. You can run compute_pre_money_scenario and compute_post_money_scenario independently to build a full picture before bringing in an advisor.
- Save time running numbers. Instead of opening three different spreadsheets, you input your variables once and get a structured comparison showing all ownership outcomes.
- Understand the 'why.' This MCP doesn't just give percentages; it shows *why* your ownership drops based on when dilution occurs relative to the cash infusion.

## How It Works

The bottom line is that you walk away with an undeniable number that quantifies your negotiation leverage.

1. First, input your core financial assumptions: the current valuation, the size of the incoming investment, and the target percentage for the employee option pool.
2. The system then runs two separate calculations: one modeling the ESOP as pre-money and another modeling it post-money. You get both ownership results back.
3. Finally, you use the comparison tool to generate a single delta report, showing the specific percentage point drop and monetary value loss between the two scenarios.

## Frequently Asked Questions

**What is the Option Pool Shuffle?**
It is a negotiation point regarding whether an Employee Stock Option Pool (ESOP) is created before or after an investment round, which significantly impacts founder dilution.

**How can I see the monetary impact of dilution?**
Use the `compare_shuffle_impact` tool by providing results from both pre-money and post-money scenarios to calculate the dollar value lost.

**Does this tool require any API keys?**
No, this tool is completely standalone and works through Vinkius Edge without requiring external credentials.

**When I use `compute_pre_money_scenario`, what types of input data are required for the valuation?**
The tool requires three core numerical inputs: the company's pre-money valuation, the total investment amount, and the desired percentage allocated to the option pool. The calculation assumes a single, fixed valuation point; if your funding round involves complex tranches or convertible notes, you'll need to model those components into a unified effective valuation first.

**What specific metrics does `compare_shuffle_impact` reveal when comparing scenarios?**
The comparison tool gives you two critical outputs: the percentage point delta and the resulting monetary value loss. It doesn't just show a difference; it quantifies exactly how many percentage points your founder stake drops, and what that drop represents in real dollars based on the final capitalization table.

**If I run `compute_post_money_scenario` with zero initial valuation, does the tool handle it?**
Yes, the MCP handles zero or near-zero valuations correctly. When the pre-money valuation is zero, the model uses the investment amount as the baseline for determining ownership percentages. You'll still get a clear picture of how much equity is allocated to the option pool relative to the incoming capital.

**Are there rate limits when using multiple tools like `compare_shuffle_impact` in quick succession?**
Vinkius manages usage quotas, but generally, running a sequence of these calculations is efficient. If you hit a temporary limit, your agent will receive an explicit error code specifying the required cooldown period. Always check the Vinkius dashboard for current rate limits.

**Can I input blended valuations when using `compute_pre_money_scenario`?**
The tool is designed to take a singular effective pre-money valuation number. If your company has multiple sources of value—like IP revenue and physical assets—you must calculate their weighted average or use the most relevant single figure for the simulation run.