How much money do you get if your startup gets acquired?

9 min readJan 7, 2021

A younger version of me and a younger version of this Youtube channel started this series called Startup Funding Explained.

We went through a theoretical company’s story while analyzing how the cap table evolved through various rounds of funding. Make sure to watch Parts 1 through 3 if you want to get a grip on that.

Watch Startup Funding Explained Part I-III

But if you are only in for the good stuff, that’s OK. This article will analyze a few exit scenarios for that theoretical company and how much money everyone does, or does not make.

BTW, a lot of the topics covered here were way beyond my expertise, Steve Barsh helped us put these estimations together. Make sure to check out his video on Startup Exits.

Let’s look at the last version of the cap table:

  • Founder 1 4,000,000 33.96%
  • Founder 2 1,500,000 12.74%
  • Friends & Family Investor 2,000,000 16.98%
  • Employee 1 (OP1) 250,000 2.12%
  • Employee 2 (OP2) 250,000 2.12%
  • Convertible Note Investor 500,000 4.25%