Anti-Dilution (Narrow) Calculator
The formula
What the narrow-based weighted average tells you
The same weighted-average engine on a smaller denominator — only issued shares count — so the reprice moves further and costs common more.
Calculation: CP₂ = CP₁ × (OutNarrow + NewMoney÷CP₁) ÷ (OutNarrow + NewMoney÷newPrice). Enter your inputs and every substitution is shown below the result.
Reading the result
Run the identical numbers through the broad calculator: the difference is exactly what the word "broad" is worth.
Rules of thumb: Refuse narrow-based without a valuation concession elsewhere
Limitations and best practice
Two drafting words — "outstanding" vs "fully diluted" — swing real money; the formula name hides the definition.
This calculator gives an estimate based on standard formulas; it is not professional financial, medical, legal or engineering advice. Verify anything you plan to act on with a qualified professional and your own records.
Frequently asked questions
When does narrow-based appear?
Is it enforceable?
Source & methodology
NVCA forms; charter drafting practice.
Anti-Dilution (Narrow) explained: formula, worked example and honest limits
This page was written for one job: turning your own inputs into a defensible figure, with the working shown. Searchers land on an Anti-Dilution (Narrow) page for three reasons — to plan, to compare options, and to check that somebody else’s arithmetic is honest. This tool serves all three, and everything after the calculator explains the model instead of hiding it.
Like most useful measures, Anti-Dilution (Narrow) is a summary, and summaries hide as much as they reveal. The companion outputs and the input table are here to reopen what the headline compressed.
The useful way to hold Anti-Dilution (Narrow) is as a ratio with a story attached: CP₂ = CP₁ × (OutNarrow + NewMoney÷CP₁) ÷ (OutNarrow + NewMoney÷newPrice) says how the parts combine, and the 9.72 $ figure above is simply that sentence written in numbers. Everything that follows unpacks one clause of the sentence at a time.
Every figure in the prose is generated by the engine rather than written beside it — the worked example resolves to adjusted conversion price (narrow) = 9.72 $ on the default inputs, and the sensitivity section ranks the inputs that move the result — Prior price per share first, at ≈9.3 % of the headline for a ten-percent error either way in that input — which is the thread the rest of this guide pulls on.
Inside the Anti-Dilution (Narrow) calculation: formula and every input
One formula, published in full: CP₂ = CP₁ × (OutNarrow + NewMoney÷CP₁) ÷ (OutNarrow + NewMoney÷newPrice). Anything you can read, you can reproduce in a spreadsheet, and that reproducibility is the whole point of printing it rather than hiding it behind a button.
Prior price per share ($) (example value 10) is a plain measured quantity — the unit shown in the label is the unit the formula expects. If your source quotes a figure before and after some deduction, decide which one the formula wants and be consistent for every field.
New round price ($) (example value 7) is a plain measured quantity — the unit shown in the label is the unit the formula expects. Keep every money input in the same currency; mixing systems quietly corrupts the comparison.
Narrow outstanding shares (example value 8,832,245) is a numeric input whose unit is fixed by the label; a wrong unit is a wrong answer wearing a plausible disguise. The example value is there to demonstrate the mechanics, not to describe your situation — overwrite it.
New money ($) (example value 6,277,196) is a quantity rather than a category — precision here is cheap and worth having. The example value is there to demonstrate the mechanics, not to describe your situation — overwrite it.
Anti-Dilution (Narrow) with real numbers, step by step
Abstract formulas are hard to trust, so here is the complete substitution using the default inputs, written the way an examiner would want it. Starting figures: Prior price per share ($), New round price ($), Narrow outstanding shares, New money ($). The endpoint of that chain is 9.72 $ of adjusted conversion price (narrow), sitting in the “Stake expands 2.8% — a smaller denominator means a sharper reset” band.
- CP₂ = 10 × 9,459,965 ÷ 9,728,987 = $9.72
Extra shares transferred from common — 17,851. Read next to the headline, this is the figure that shows the shape of the trade-off.
Reprice severity — 2.8 %. If your inputs change, this is usually the first companion figure to move.
Full-ratchet bound — 269,023. This is the number experienced users quote when the headline alone would mislead.
Re-running with your own figures is instant; re-running by hand once is the best way to know the tool is telling you the truth.
Scenario table: Anti-Dilution (Narrow) at ±10 % and ±20 % of the key input
Single-point answers invite false confidence, so the same engine was run across a band around the input that matters most here. Each row is a full recalculation of Anti-Dilution (Narrow), not an interpolation.
| Prior price per share setting | Adjusted conversion price (narrow) |
|---|---|
| 80 % of the example value | 7.91 $ |
| 90 % of the example value | 8.82 $ |
| example inputs | 9.72 $ |
| 110 % of the example value | 10.63 $ |
| 120 % of the example value | 11.54 $ |
The corridor runs from 7.91 $ to 11.54 $ across that band — which is the range worth planning inside rather than the single 9.72 $ point estimate. Reproduce it in the form above by editing Prior price per share alone; the substitution steps will follow your figures exactly.
The levers behind Anti-Dilution (Narrow), ranked by effect
Generic advice says “it depends on your inputs”; this section says exactly how much. Each field was perturbed by ±10 % in isolation and the adjusted conversion price (narrow) recomputed, so the ranking below is measured rather than asserted. It is the fastest honest answer to “what matters most in Anti-Dilution (Narrow)?” — and it is specific to these defaults, because sensitivity moves with the starting point.
- Prior price per share +10 % → Anti-Dilution (Narrow) = 10.63 $ · −10 % → 8.82 $ (the adjusted conversion price (narrow) shifts ≈9.3 %)
- New round price +10 % → Anti-Dilution (Narrow) = 9.81 $ · −10 % → 9.62 $ (the adjusted conversion price (narrow) shifts ≈1.0 %)
- Narrow outstanding shares: ten percent up gives 9.75 $, ten percent down gives 9.70 $ — ≈0.3 % of the adjusted conversion price (narrow) either way
- Nudge New money by ±10 % and Anti-Dilution (Narrow) lands between 9.70 $ and 9.75 $ (sensitivity ≈0.3 %)
Prior price per share is the dominant lever here: ten percent either way moves the result by about 9.3 %, from 8.82 $ to 10.63 $. That is where a careless figure does the most damage, so check it against a source, and treat New round price as the second priority (≈1.0 % per ten percent). Everything below that can stay approximate, which is a licence to stop chasing data that would not change the decision.
Interpreting the Anti-Dilution (Narrow) verdict
Nobody acts on a bare figure — they act on a figure with a comparison attached. On the example inputs the band reads “Stake expands 2.8% — a smaller denominator means a sharper reset”; your own figures place you on a different rung of the same ladder. How much of that band is luck? On Prior price per share alone ten percent either way covers 8.82 $ to 10.63 $. The practical reading rules: read the band as a starting hypothesis, then test it: change the two dominant inputs by ten percent and see whether the verdict survives. Verdicts that survive stress are the ones worth acting on.
In Business & Entrepreneurship, Anti-Dilution (Narrow) is one instrument in an orchestra: on its own it is a number, next to Extra shares transferred from common and Reprice severity it becomes a diagnosis. The tools linked above exist so the headline never has to carry that weight alone.
How people get Anti-Dilution (Narrow) wrong
Two drafting words — "outstanding" vs "fully diluted" — swing real money; the formula name hides the definition. This calculator gives an estimate based on standard formulas; it is not professional financial, medical, legal or engineering advice. Verify anything you plan to act on with a qualified professional and your own records.
Copying a single headline number without checking the companion outputs. The tool reports Extra shares transferred from common, Reprice severity and Full-ratchet bound alongside the main result precisely because Anti-Dilution (Narrow) in isolation misleads — the secondary columns are where outliers and trade-offs show up.
Attention is also misallocated between fields. Having measured this engine, we can say where it belongs: Prior price per share first, everything else second.
A final trap is presentation: reporting Anti-Dilution (Narrow) to more decimal places than the inputs support. The tool prints what the arithmetic gives; you should quote only what your least precise field justifies.
Six things to confirm before acting on Anti-Dilution (Narrow)
- Re-run the calculation with a ±10 % stress on the two most sensitive inputs.
- Confirm the example values are plausible for your own situation before replacing them.
- Check Prior price per share before anything else: it is the measured dominant input, ≈9.3 % of Anti-Dilution (Narrow) per ten percent.
- Record the date and the inputs alongside the number so future-you knows what was assumed.
- Compare the output against one published benchmark or a colleague’s independent estimate.
- Run the ±10 % stress on the top two levers and check that your conclusion survives both.
Step by step: getting a trustworthy Anti-Dilution (Narrow) out of this tool
Using a calculator well sounds trivial, but the difference between a decision-grade figure and a throwaway one lives entirely in the routine. The routine for Anti-Dilution (Narrow) takes a minute to learn and applies to every input above.
Step 1 — gather before you type. Anti-Dilution (Narrow) depends on prior price per share ($), new round price ($), narrow outstanding shares, new money ($). Collect them from a source document — a statement, a report, an invoice, a log — rather than from memory, because recalled inputs are the single largest cause of wrong results. Write the assumptions in the same file as the result, and future arguments take minutes instead of meetings.
Step 2 — compute the version you would not be embarrassed by. If a stranger audited your inputs, which set would you hand over? Enter that set, read the result, and treat everything else as upside. Numbers are cheap to produce and expensive to retract; the extra minute is the cheapest insurance available.
Step 3 — measure what deserves measuring. The ranked levers above tell you where a careful figure pays off. Everything else can stay approximate, which is a licence to stop hunting for data you do not need. Write the figure down before moving on; memory flatters whichever number you saw last.
Step 4 — compute a corridor, not a point. Three runs — worst, likely, best — turn Anti-Dilution (Narrow) from a snapshot into a range. Plan against the pessimistic end and treat the optimistic end as the upside story. Suspiciously tidy answers deserve the same scrutiny as untidy ones.
Step 5 — save the story with the figure. A number without its inputs and its date is unusable within a quarter. Record 9.72 $, the assumptions behind it, and today’s date; your future self will be auditing a stranger’s arithmetic. Re-running a number costs seconds; retracting a decision costs considerably more.
Who actually uses Anti-Dilution (Narrow) — and when
Numbers earn their keep in conversations, and Anti-Dilution (Narrow) is no exception. In Business & Entrepreneurship discussions around Startup Metrics, this figure decides whether an option stays on the table: it converts an opinionated debate into an arithmetic one, and arithmetic is the only referee both sides accept. When two sources disagree, it is almost never the arithmetic that differs.
The audience for this page is people who need one trustworthy number before their next decision. In professional Startup Metrics practice the pattern is always the same — screen with Anti-Dilution (Narrow), then invest slow analysis only in whatever survives the screen. Rounding early is the quietest way to introduce a permanent error.
Treat Anti-Dilution (Narrow) like a smoke alarm rather than a painting — its value is in being tested periodically, not in being admired once. If a result feels obviously right, that is the moment to check the inputs hardest.
Anti-Dilution (Narrow) — frequently asked questions
What affects Anti-Dilution (Narrow) the most?
The short answer: Prior price per share. The longer answer is the sensitivity table on this page, where every numeric input was probed by ten percent and the adjusted conversion price (narrow) recalculated — Prior price per share moved it furthest, by roughly 9.3 % (8.82 $ to 10.63 $).
Which matters more: new round price or prior price per share?
For Anti-Dilution (Narrow), Prior price per share wins the head-to-head (≈9.3 % against ≈1.0 % per ten-percent change). Knowing which input dominates is the difference between careful work and merely slow work.
What is a typical Anti-Dilution (Narrow)?
On the worked example above Anti-Dilution (Narrow) comes out at 9.72 $. Treat that as one point on a distribution rather than a norm: the bands, the companion outputs and the sensitivity ranking tell you how wide the plausible range really is.
How do I calculate Anti-Dilution (Narrow) by hand?
Use the stated model — CP₂ = CP₁ × (OutNarrow + NewMoney÷CP₁) ÷ (OutNarrow + NewMoney÷newPrice) — and substitute in the order the tool prints (it starts from CP₂ = 10 × 9,459,965 ÷ 9,728,987 = $9.72). On the example inputs the hand route lands on 9.72 $, exactly what the calculator shows. A spreadsheet reproduces it in two or three cells; doing it once by hand is what makes the automated answer trustworthy.
What happens to Anti-Dilution (Narrow) if prior price per share changes by 10 %?
On these inputs a ±10 % change in prior price per share takes Anti-Dilution (Narrow) to 10.63 $ against the 9.72 $ example — around 9.3 % of the headline. The same test on every other field is in the sensitivity section.
Is the Anti-Dilution (Narrow) result of 9.72 $ good or bad?
The tool answers “what”, not “whether”: 9.72 $ carries the verdict “Stake expands 2.8% — a smaller denominator means a sharper reset” for the default case, which is a starting interpretation rather than a verdict on your situation. Re-run with your own figures and compare the bands.
Is Anti-Dilution (Narrow) accurate?
The arithmetic is exact: CP₂ = CP₁ × (OutNarrow + NewMoney÷CP₁) ÷ (OutNarrow + NewMoney÷newPrice) is evaluated with full floating-point precision and every substitution is printed in the worked example. What limits accuracy is input quality and the model’s assumptions, so treat the 9.72 $ result as the correct answer to the question you typed — and check the assumptions section before acting on it.
What affects Anti-Dilution (Narrow) the most?
Sensitivity depends on where you start, but the inputs Prior price per share ($) and New round price ($) typically move Anti-Dilution (Narrow) further than the rest because they enter the formula multiplicatively. If you can only measure two things well, measure those and hold the others at conservative defaults.
When does narrow-based appear?
Bridge notes and asymmetric leverage deals; it is unusual in priced rounds and deserves a flag.
Is it enforceable?
Yes — anti-dilution formulas are purely contractual and entirely negotiable.
Is my data private on this page?
Yes — computation happens locally in your browser, with no account, no tracking of your inputs and nothing sent to a server. The printed formula is the whole story of what happens to your figures.
The vocabulary of Anti-Dilution (Narrow)
- Extra shares transferred from common
- 17,851 for the Anti-Dilution (Narrow) worked case; it sits next to the main result because it carries context the headline leaves out.
- Reprice severity
- 2.8 % on the example inputs — a companion figure printed beside the headline of Anti-Dilution (Narrow) so that no result is read in isolation.
- Full-ratchet bound
- 269,023 on the example inputs — a companion figure printed beside the headline of Anti-Dilution (Narrow) so that no result is read in isolation.
- Adjusted conversion price (narrow)
- The primary output of this tool: 9.72 $ for the default inputs, computed exactly from CP₂ = CP₁ × (OutNarrow + NewMoney÷CP₁) ÷ (OutNarrow + NewMoney÷newPrice).
- Worked example
- The step-by-step substitution printed above, so the arithmetic can be re-derived by hand or in a spreadsheet.
- Verdict band
- A named zone on the range of plausible results; the example inputs land in “Stake expands 2.8% — a smaller denominator means a sharper reset”, and your inputs may not.
- Sensitivity (±10 %)
- How far the Anti-Dilution (Narrow) moves when a single input is nudged ten percent either way; the ranked list on this page is computed live from this engine.
Method, sources and what this tool cannot tell you
Everything above runs on one stated formula, applied without hidden coefficients: CP₂ = CP₁ × (OutNarrow + NewMoney÷CP₁) ÷ (OutNarrow + NewMoney÷newPrice). Source of record: NVCA forms; charter drafting practice. Any other implementation of this model should return the same figure for the same inputs. If one does not, the difference is in its assumptions — which this page prints and that one probably does not.
Treat the output as a precise answer to the question you typed: exact arithmetic, transparent formula, published source, no hidden rounding. The design constraint was set by usefulness rather than by comfort: an estimate you can interrogate beats an answer you have to trust.
What to do with your Anti-Dilution (Narrow) next
Save the number together with its inputs and today’s date; an Anti-Dilution (Narrow) figure without context is unusable the moment an input changes.
This page was written for people who need one trustworthy number before their next decision, and the promise is that nothing above required trust. Bookmark the tool, re-run it whenever an input moves by more than a few percent, and keep the date with the number.