Capital Structure
Ownership distribution across security instruments and dilution stages.
The 3 Grove founders each hold an equal one-third share of the Equity Incentive Plan.
400,000 shares authorized. 352,200 allocated across 7 entities.
The 47,800 unallocated shares (11.95%) will be distributed to the 3 Grove founders ahead of completing the fundraise.
The 4 common shareholders have agreed to entertain diluting their interest by up to 90%, if necessary to secure additional investment capital. The resulting equity would go to the 3 Grove founders. Total authorized shares increase from 400,000 to 4,000,000.
Upon a priced round, the 13 SAFE holders ($7.91M invested) convert into equity at their respective valuations, diluting existing shareholders. Total shares increase to ~6.6M.
A hypothetical priced round at 20% dilution ($5M at $25M post-money) further dilutes all existing holders. Total shares increase to ~8.3M.