How to summarize shares of angels repeating investments?


Provided I raise a first investment from angel on X valuation, then raise another one from same angel on X+Y valuation, what would be the total amount of percentage the angel will have of the company?

I mean, it's clear his/her first investment percentage will become lower, but how these two percentage are summed?

I guess it's pretty trivial to calculate, but for some I reason I have a mind block at this time of the night.


Angel Investment

asked Aug 25 '11 at 06:55
Sy Ber
109 points
Get up to $750K in working capital to finance your business: Clarify Capital Business Loans
  • Don't quite understand why the question was down-voted - if this a stupid question (which it very might be), just throw a link/calculator to me, and I will delete it. – Sy Ber 13 years ago
  • To better rephrase it, it seems mathematically correct to just add the 1st share (diluted following 2nd investment) and the 2nd share, but in this case the resulting invested sum exactly equals what the angel has invested. Shouldn't the 1st sum be higher due increased company valuation, thus creating a higher total then what the angel invested? – Sy Ber 13 years ago

1 Answer


You don't sell the angel percentages, you sell the angel shares.

A higher valuation implies a higher share price.

For instance, if you

  1. sold the angel 1000 shares at $20 each for $20,000, then
  2. sold the angel 500 shares at $50 each for $25,000

the angel now has 1500 shares.

At any given time the percentage of the company that the investor owns is equal to the number of shares they have divided by the number of shares outstanding.

answered Aug 25 '11 at 11:46
Joel Spolsky
13,482 points

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Angel Investment