A financial modeling tool that visualizes how investment proceeds are distributed among different share classes during a company exit or liquidation event. This calculator helps investors, founders, and stakeholders understand the financial implications of various exit scenarios based on liquidation preferences and participation rights.
| Name | Type | Seniority Determines the order in which share classes receive distributions. Higher numbers have higher priority (3 is higher than 1). | Liquidation Pref Multiplier applied to the original investment that preferred shareholders receive before common shareholders. E.g., 1x means 100% of investment is returned first. | Pref Type Non-participating: Preferred shareholders choose either liquidation preference OR pro-rata share. Participating: Preferred shareholders receive BOTH liquidation preference AND pro-rata share. | Cap For participating preferred shares, limits the total return as a multiple of the original investment. E.g., 3x cap means maximum return is 3 times the investment. | Actions |
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| Share Class | Shares | Investment The amount of money invested to acquire these shares. Used to calculate liquidation preferences for preferred shares. | Actions |
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This chart shows the total distribution and breakdown for each share class.
| Share Class | Amount ($) | Percentage |
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This chart shows how proceeds are distributed across different exit values.
This Waterfall Analysis Tool is provided solely for educational and informational purposes. The calculations, projections, and analyses generated by this tool are intended to serve as general illustrations of potential investment outcomes and should not be relied upon for making investment decisions.
The information provided herein does not constitute legal, financial, tax, or investment advice. Prior to finalizing any investment or transaction, users should consult with qualified legal counsel, financial advisors, and other professional advisors to ensure compliance with applicable laws and regulations and to address specific circumstances.
The creators of this tool make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the tool or the information generated. Any reliance you place on such information is strictly at your own risk.