INSTRUCTIONS
You need to enter values for two of these, by default equity is calculated:
FU Money: The amount of money you can expect to walk away with. For true "Fuck You" money, it should probably be at least $7.5 million US. It should be adjusted for purchasing power parity and lifestyle.
Exit Amount: The liquid value of the company. For a publicly traded company, the liquid value would be equal to the current share price times the number of shares. For a company which is acquired, this would be the sale price. This would not be the valuation at a round of investment unless you are able to cash out.
Equity: How much of the company you need to own for a particular scenario.
These are optional
Dilution Factor: Allows one to account for additional shares being issued when the company takes on outside investment, creates an option pool, or adds shares for any other reason.
Outside Investment: This number is meaningful based on the assumption that outside investors will recieve preferred shares which entitle them to get their investment back before funds are distributed to other shareholders.
Liquidity Preference Factor: Sometimes outside investors will receive a multiple of their original investment back before other shareholders. A factor of one means that only their original investment recieves preference. A higher factor means that they get a multiple of their original investment back before other stockholders receive funds.
For more on these optional items see Mark Suster's description: HERE