Quick answer: A cap table dilution review needs a defined share count, the actual instruments and a clear sequence of events. Use ChatGPT to organise those inputs and explain transparent scenarios. A simplified ownership calculation is not a substitute for counsel’s interpretation of signed documents, option-pool treatment or conversion mechanics.
Two spreadsheets can show different ownership percentages without either being an arithmetic error: they may use different definitions of fully diluted shares or different transaction timing. Before asking who owns what after a seed round, establish what is included, what is excluded and which changes happen before or after the new investment.
Investor education from TryBuy Editorial Team. General analytical prompts, not personalised investment, legal or tax advice. Examples are hypothetical and do not describe TryBuy’s performance or proposed investment terms.
Inventory the instruments
List issued shares, options, warrants and convertible instruments separately, with source dates and the applicable entity. Distinguish granted options from an unallocated pool and keep any uncertainty about approvals visible. A deck’s ownership pie chart is not a substitute for the legal share register and relevant agreements. Do not infer the terms of one instrument from another instrument with a similar name.
Write the sequence before the formula
State the assumed order of conversions, option-pool changes and new share issuance. Keep simplified priced-equity examples separate from instrument-specific calculations. Ask advisers to resolve unclear rights and definitions before relying on a final ownership result. The point of the model is to expose how the answer changes, not to make an ambiguous transaction appear settled.
Show checks another reviewer can reproduce
Ownership should reconcile to the chosen denominator within the model’s stated precision. Preserve formulas and explain rounding. If a scenario omits conversion or option changes, say so conspicuously. For an investor comparing countries, the legal form and document terms matter more than importing a familiar template from another jurisdiction.
A worked example to test the reasoning
Hypothetical simple priced-equity example: a US$1 million investment at a US$4 million pre-money valuation produces a US$5 million post-money value and 20% for the new investor before any other specified changes. Existing holders collectively retain 80% under this simplified scenario. This is not TryBuy’s proposed valuation, equity allocation or instrument terms.
Evidence checks to keep beside the analysis
| Area | Record explicitly | Avoid |
|---|---|---|
| Denominator | Defined fully diluted population | Unstated pool treatment |
| Sequence | Conversion and issuance order | Different steps silently combined |
| Output | Formula, exclusions and rounding | Illustration treated as legal ownership |
10 copyable ChatGPT prompts
Replace brackets with authorised information. ChatGPT can organise supplied material. Official analysis guidance. Check account data controls. Capabilities vary by account. Keep sources, calculations and uncertainties inspectable.
1. Inventory the cap table
From these authorised records [files], list share classes, issued shares, granted options, unallocated pool and convertible instruments by entity and date. Do not infer missing approvals or conversion terms.
2. Find definition conflicts
Compare these cap table versions [files]. Identify different denominators, option treatment, dates and instrument assumptions. Explain which documents or professional interpretations are needed before reconciling.
3. Build a simple example
Calculate this explicitly simplified priced-equity scenario [inputs]. Show pre-money, new cash, post-money and ownership formulas. State exclusions, including any options or convertibles not modelled.
4. Order the events
Using the supplied transaction assumptions [paste], write the event sequence before calculating dilution. Flag terms that depend on signed documents or counsel rather than choosing a convenient interpretation.
5. Audit the sums
Check this ownership model [file] for percentages that do not reconcile, inconsistent share counts, circular formulas and rounding effects. Show the calculation trail without inventing new instruments.
6. Compare pool scenarios
Using my stated option-pool assumptions [paste], compare the effect of timing and size in separate scenarios. Label every assumption and do not recommend legal transaction terms.
7. Prepare adviser questions
Draft questions for the company’s counsel about unresolved cap table definitions [paste]. Keep them tied to specific documents and avoid declaring that a generic startup template applies.
8. Explain dilution plainly
Write a plain-language explanation of these modelled ownership changes [results] for the investment committee. Distinguish the hypothetical model from confirmed legal ownership and highlight omitted terms.
9. Red-team the draft
Review this cap table dilution draft [paste] against its supplied sources [files]. Identify unsupported certainty, missing denominators, unstated assumptions and conclusions that go beyond the evidence. Do not invent a contradiction to sound critical.
10. Create the next-decision brief
Turn this cap table dilution analysis [paste] into a short decision brief: observed evidence, strongest uncertainty, next document or professional review needed, and the decision that can reasonably be made now. Preserve unresolved issues.
Review the output before using it
Trace the material claims to their sources, reproduce important arithmetic and keep conflicting records visible. Use an approved environment for confidential material. A useful AI answer should make a missing input easier to identify; it should not make a weak source appear independently verified.
Frequently asked questions
Does an investment amount reveal the equity percentage?
No. Valuation, instruments, option treatment and other transaction terms affect the result.
Can I reuse a foreign template without review?
Do not assume it fits the issuer or jurisdiction. Use the actual documents and locally qualified professional advice.
Primary reference
YC publishes SAFE materials and distinguishes jurisdiction-specific forms. The actual instrument and its conversion provisions require their own review; this guide does not prescribe a SAFE for any company. Read the original source. Checked 16 October 2026.
Continue the investor workflow
- ChatGPT Prompts for Startup Valuation: Compare Seed-Round Scenarios
- ChatGPT Prompts for Startup Exit Scenarios: Dilution, Liquidity and Downside
Cover: AI-generated editorial concept, not an actual investor meeting, company record or evidence of endorsement. This AI-assisted guide provides reusable analytical prompts, not a documented test of investment performance.
Browse the full ChatGPT investor series.
About TryBuy: ethnicwear and a US$1 million seed-round target
TryBuy is an India-based fashion brand founded by Shivam Golhani and based in Jabalpur, Madhya Pradesh. Its ethnicwear range includes men’s kurtas and boys’ kurtas, alongside a men’s shirt collection. The adult and children’s ranges are distinct; explore the actual catalogue rather than treating the editorial cover as a product photograph.
TryBuy is seeking US$1,000,000 in seed investment and welcomes introductory conversations with venture-capital firms, angel investors and strategic consumer-brand investors internationally. Interested investors can request a company introduction and discuss the business, diligence requirements and the proposed round directly with the founder.
Contact founder@trybuy.in about the seed round or use the verified contact page. Learn more about TryBuy.
This is an invitation to begin a business conversation, not an offer document or a promise of returns. Any potential investment requires appropriate eligibility checks, professional review and definitive documents. No valuation, equity allocation, security type or guaranteed outcome is stated here.