The amount of shares that an investor owns, divided by the total number of existing shares, is the percentage of equity that particular investor owns in the company. The total number of outstanding shares in the equation above refers to all shares that exist today, including all shares purchased by investors, in addition to all shares likely to exist if a liquidity event were to occur. Equity Ownership Percentage = No. of Shares Owned / Total no. of Outstanding Shares Events That Can Impact Startup Valuation: • Company progress (typically leads to an increase to valuation) • Company challenges (typically leads to flatline or even decrease to valuation) • Market dynamics • New priced equity round, acquisition, or IPO To calculate the value of an individual investor’s shares in a startup at any given time, multiply the number of shares the investor owns and the company’s current price per share. Preferred Stock Rights: Liquidation Preference: This specifying whic...