Guide
What This Tool Does
When a startup's funding round is oversubscribed (more investors want in than there's room for), this tool helps allocate the available investment fairly based on each investor's track record.
Why It Matters: Popular startups often receive more investment interest than they need. Instead of arbitrary decisions, this tool distributes allocation proportionally based on how much each investor typically invests.
How It Works
Think of it like sharing a pizza when everyone wants different amounts:
- Start with history: Look at how much each person usually eats
- Calculate fair shares: Divide proportionally based on those typical amounts
- Respect limits: If someone wants less than their fair share, give them what they want
- Redistribute: Share the extra slices among the others, keeping it fair
Simple Example
You have $100,000 to allocate among 3 investors:
- Investor A: Typically invests $95k, wants up to $100k → Gets $97,970
- Investor B: Typically invests $1k, wants up to $2k → Gets $1,030
- Investor C: Typically invests $4k, wants only $1k → Gets $1,000 (their max)
Investor C reaches their limit first. The remaining amount gets split between A and B based on their usual investment sizes.
Getting Started
Using the Tool
- Set Total Allocation: Enter the total amount you want to distribute
- Add Investors: For each investor, enter:
- Name
- How much they want (their request)
- Their typical investment size (historical average)
- Calculate: Click to see the fair distribution
- Review Results: See exactly how much each investor receives
Try an Example
Use the "Sample Data" menu to load pre-filled examples and see how different scenarios work.
Features
- Fair Distribution: Based on historical investment patterns
- Respects Preferences: No one gets more than they asked for
- Easy to Use: Clean interface, instant results
- Handles Edge Cases: Works correctly even with unusual inputs