Understand valuation and dilution

Understand how financing terms affect ownership calculations.

Last reviewed: 2026-08-25

Valuation

Valuation supplies the economic basis used by applicable contracts and rounds. A round valuation can serve several contracts; a contract-specific valuation overrides it only for that contract.

Dilution

Dilution describes the reduction in an existing holder’s percentage when the ownership base grows. EqDeal can allocate dilution to eligible unissued contracts or investors before an issuance.

Before relying on a percentage

• Confirm whether the figure is pre-money, post-money, issued, or fully diluted.
• Confirm whether a contract inherits round valuation or has its own valuation.
• Confirm which reserves, pools, or projected instruments are included.