Startup Company Structure - Calculating valuation, equity, dilution

Book a 'Startup Mentoring Session' with me - www.rajatyadav.info
Who Am I?
I am Rajat Yadav, an IIT Madras Alumnus and the founder of one of India's earliest and then largest mobile lending apps - 'Z2P'. Having built Z2P from scratch, raising multiple funding rounds and finally selling my startup to PayMate, I am on a journey to build more meaningful businesses and share my knowledge in the process.
Some of the most asked topics in the startup world are - how is a company formed? How do you calculate valuation? What is paid-up capital? What are equity and dilution?
Answering and explaining, in detail, all of these.
Connect with me on Instagram and ask me questions directly: / rajatyadavi. .

[@alaminriad9877]

I can't figure out that how did u calculate The value of X which come out 1000?? Can u help me?

[@rajatyadav800]

Hi Alam, two points: 1) I made an error in writing: it should be (x/(10000+x)) and not (x/(1000+x)). 2) The exact value of x = 989. To keep things simple, i made an approximation of 989 shares to 1000 so that percentages are not in decimal.

[@ankitkedia829]

A simple way of saying is both will give 10% of their share. 10% of 80% and 10% of 20%. 8% and 2%. Algebra is not required ; )

[@kowshikart]

Exactly

[@ShreyashPatil1811]

Everybody wants to show how complicated the things that he know are so that there status in the other person mind rises that how well he knows But in reality everything is easy its just people make it complicated

[@unbeatable1743]

@@ShreyashPatil1811 absolutely ryt 👍🏻

[@simranwalia2823]

Absolutely!

[@Nilmusic516]

Same thing that I thought 😆😂lol

[@bharatdubey8738]

Sir u are underrated and u will be underrated becz not everyone is entrepreneur mindset and wanna learn... Only top 2-3% who are genuinely interested in these topics searched and reached u... Don't stop creating contents thank u.

[@rajatyadav800]

Hi Bharat, thanks for the appreciation. This is what keeps me motivated :)

[@mayursuryavanshi1655]

The value of X= 1000 ?? There is a mistake... In video at 26:59 take value 10000+X and further solve equation u will get value of X= 989.01 Means the new share which will be added = 989... Small mistakes are happened but sir u explained extremely good.... Thank you so much.... Please make more videos like this...🙏🙏👌👍

[@chiragvadher6538]

True,

[@kashanhanif8668]

Same Here I Was Confused I Checked Again & Again The Value Was Coming Out Be Exact 989.011 Each Time Then I Opened The Comment Section And I Saw Your Comment Thanks For Putting It Up & No Doubt He Explained Very Well.

[@peterofficialchannel4776]

You guys are getting 989.01 while me 98.901....😂😂

[@kashanhanif8668]

@@peterofficialchannel4776 X/10,000 + X = 9/100 We Will Now Cross Multiple Each X(100) = 9(10,000 + X) 100X = 90,000 + 9X Now 9X Is In Addition On The Left Hand Side When We Shift It To The Left If Will Be In -(minus) 100X - 9X = 90,000 91X = 90,000 Now 91 Is In Multiplication Of X When We Move It On The Left Hand Side It Will Be In Division. X = 90,000/91 X = 989.011 Hence Proved The Value Of X Is 989.011

[@rajatyadav800]

You got it right. Mistake from my side :)

[@arth_chart5280]

50-4.5= 55.5 ☺️ IITians are not superhuman they also make mistakes just like any other college students, dekh k acha laga.

[@oudandenglish]

45.5 not 55.5 . when you correct others don't make another mistake..!!

[@dorcenviliere6195]

When you were explaining for the 3rd Investors (80%/20%) and the third one ask for 10% of the company, you could’ve just said that the initial shareholders will just give him 10% of their percentage and it will be (8% + 2% = 10%) and they will be (72%, 18%, 10%) There is nothing wrong but this could be faster for you. But great video man👌🏼🔥Thanks

[@Shahidziya2000]

Same what i was thinking

[@atuljarial]

True..that would have been more easier and you get more time to explain actually complex topics.But excellent video. Thanks

[@mohammedansar2840]

Actually😀.. He made the explanation complex

[@sureshdeenan2503]

@@mohammedansar2840 yes

[@TheTczar]

your method of coaching is amazing. you should write a book of all these videos.

[@maheshgunta3437]

Perfect brother! With one video, all my dots are connected. Thank you so much !

[@chernohmansaray402]

I have learned within 40min of your video that have done with my four years into academic degree.

[@sammyvoma]

Doing Great job bro..Watched your all videos in one go...Helped me a lot.Thanks a lot.

[@yogya27]

Sir, you are literally too much undervalued.!

[@Rash-404]

Do like if you came here after watching shark tank 🤛

[@rsharma3602]

Hi you should turn off Auto Focus on Camera. Fix Focus manually. Focus is jumping in the video at 1.41 and 1.56 camera function defocus. Use a Black body pen. The camera AUTO focus disturbs the Aperture also.

[@BlueChipMart]

yes exactly... even i know almost 70 80% but my few doubts were cleared thank you.. 1 more thing right no video or content is available on youtube but i have made videos on in or teach to my students same as u take all these example like this... !

[@MrunaliniPatil98]

I really needed this clarity from long time. Thank you so much sir. You are absolutely correct why should one waste time and make things complicate for onself after all this so easy . !!!

[@raajesharya]

You are a genius, Rajat. People need to learn how to melt a stone. Wow!!! Thank you for simplifying such a hard subject.

[@maverickgamer07]

i've bootstrapped my company and based on my Y2Y revenue my company valuation is 10 cr and I yet to take any investment. thanks for explaining the basics so I can go for the first round.

[@esahansikder]

Everyone must understand this, even before going for a Pitch. will save a lot of time.

[@sachinn7072]

Excellent explanation bro... You got my dbts cleared... Thank you so much...

[@patel4163]

Great explanation... its solved my my problems and given me too much knowledge to run my new startup. Thanks friend.

[@saumyadesigns_]

It's really awesome.... Thank you for explaining this all method.

[@thesnoppymind]

Wow!! What a wonderful explanation. Thank you.

[@nazeerahmed2434]

Woww!! This is Simply Amazing..I'm glad I have found you.. Keep up the good work bro 😊👍

[@tusharkumar9968]

Thank you so much for such valuable information sir. It cleared so many doubts of mine. Looking forward to learning from you in future as well.❣️

[@phaniindra4353]

U can calculate the valuation of the company 100/percentage you are offering to the investor *. money you are seeking Lets say u r asking 10,00,000 for 9% which means 100/9*0.1=1.1cr( lakhs should always be in decimals)

[@chinmoys88]

THAT,S A AMAZING VIDEO YOU HAVE CREATED.THANK YOU.

[@CoolBoy-re3or]

A big thank you! 🙏 It'll help me in my startup. ❤

[@adityagupta7288]

thankyou for the efforts rajat ji

[@veereshgt9838]

This is one of the very informative videos that I have watched. Great job Rajat!

[@vibhashirke289]

So nicely explained thank-you the entire video was worth watching

[@kazitashiney8228]

Great help! Lots of foggy concepts got cleared.. thanks!

[@user-qk1br3me7e]

Please make more calculation related videos like this, based on investments and startups. You are the only person on KZbin under this category (investments and startups) whose videos are useful in real life !

[@vinaylohani2951]

Crisp n clear! Clearing away all of my doubts. Thank you sir for such a good explanation.

[@rajatyadav800]

Glad the video helped you :)

[@dadaeditz3073]

Thank you for the concept sir I learnt with SWAG 🤘

[@gourabbanerjee9531]

Outstanding..loved it..

[@fastestameoba4035]

Thanku. Best video for me.

[@NSSPP]

Its basic and theoretical. Now i request to make video on practical basis . It will rock for sure.

[@shrikantpawar1192]

Great video .... We need more videos like this . Thanks Brother

[@phenomenally2575]

Thanks sir. You cleared my doubt .

[@skchannel8069]

Dada you r doing great job your content is very knowledgeable thank you expecting more videos further

[@surajarya1]

the best video of explanation....

[@sravibalan]

Excellent video and explanation Rajat. Thanks for sharing your insights. Please share more and Continue. Subscribed. 👍

[@paragkadam2169]

Top class video, thank you!

[@syedrahamathulla8095]

Excellently explained. I warched this video completely from starting to end.

[@rajatyadav800]

Hi Syed, glad you liked the video and I hope it added value.

[@sidehustle6465]

So simple and easy, thank you sir ji

[@fathima.k6801]

Explained in a simple way.Thanks a lot 😊

[@9289728992]

Thanks sir, neat and clean explaining

[@dineshbhalajimahesh8095]

Awesome video 👍 concepts where explained very clearly.

[@swarnalicreations4136]

What a great explanation.

[@BEBAwrites]

Worth spending the time. Thank you 😊

[@viranshmokati2009]

Content hai bhai content hai....Thank you sir.

[@gauravmalge2911]

Amazing video sir...... I was looking for this video for lot of time

[@user-mv3sz9gk1d]

Come here as I'm watching shark tank and confuse about everything related to business but I just find it interesting

[@robotech.ai1]

Thank you so much Sir! Watched 2 times 😅 and finally it getted standard!

[@asim-gandu-phenchod]

Very well explained. Thanks a lot

[@abhishekreddy9892]

Great insight from you sir, this video gave me new insights into the entrepreneurial concepts

[@Kirtithakur123]

Awesome explanation... was working on one policy, your class has really helped me.

[@akashvarghese6136]

Such a good general knowledge Amazing

[@rezwansvlog3239]

Great video. Just awesome

[@emkjuslen]

Thanks for this amazing video

[@buddha906]

Thank you So much🔥 you have done a great job, this video was very helpful 😉

[@er.unsaid7766]

loved it.

[@IDYAZ4U]

🤪 50% deducted with 4.5% is equal to 55.5%??? You made me laugh in the morning! Rajat great job, keep it up bro.

[@arjunyosinger4448]

Thank u, bro. U made my day.

[@motivate2363]

I was scared. But after i see your vdo it's easy

[@nps4304]

Superb video for beginners 🙏🙏👌👌

[@MidNightsRBLX]

Well explained!

[@aryabhatt6547]

Thank u sir for this video..

[@sery532]

Valuable information.Thank you

[@ask-csk]

Superb., he made it simple as much as possible ❤❤❤❤❤ Keep it up ❤

[@socketstudio2022]

Super 😊 💯 thanks for sharing 😀

[@abbashaider6012]

I am watching this after shark tank india

[@PriyashaGupta]

Thank you so much Such great information ☺️

[@rcstockmarket7408]

Excellent video. After watching multiple video got the clarity on shares.

[@rajatyadav800]

Glad you liked it and found value :)

[@poushanhassan187]

You are a very good mentor 🤩🇧🇩🇧🇩

[@bhathazim9766]

Mind blowing vedio brother.

[@headius]

At 13:01 the calculation of transfer can also be done by deducting the percentage of new owner from the previous owners. E.g. C1 had 80% C2 had 20%. Now C3 asking for 10%. Therefore, For C1 (80-(80*10%)) = 80-8 =72% Same for C2. But, great explanation Thank you.

[@SamanBoxpk]

Its much simple.

[@dhananjaymajhi5237]

Best explanation simple .....if u teach accounts people will understand non backgroud of accounts same as me required ....

[@AjitKumar-pz4yr]

Very helpful. Pls keep on uploading these type of videoes.

[@ideidowchannel8646]

thanks, great explaination

[@DJVTony]

Kamaal ka explanation bhai! Thanks a Ton! 🤩

[@mohamednafris2302]

Keep on posting sir, Thank you for very information and good for go finance stdents

[@rajatyadav800]

🙏🏻

[@mamendragupta2151]

THANKS A LOT SIR TUTORIAL REALLY VERY HELPFUL

[@sathish2719]

Great..Thanks

[@kinsysindia7752]

VERY GOOD. I REALLY APPRECIATE YOUR KNOWLEDGE. HATS OFF.

[@NaveenKumar-ri9rm]

love the way you explain.. thank you

[@rajatyadav800]

🙏🏻

[@swapnilpatole9455]

Thanks for Raw Material

[@RajaBabu-nl9yj]

really informative video.. keep it up dear

[@zayyanusmani5360]

I have been searching for these answers for 3 years. This was the best explanation. Thank you so much.

[@rajatyadav800]

Glad it gave you value 🙏🏻

[@studychesspro]

very well explained

[@siddharth9248]

Great sir r i really loved ur video

[@SnehilRayal]

Great going bro 🙂👍

[@premnathdas9968]

A lots of thanks to you sir

[@AK_anig]

such an amazing information. Thank you so much

[@rajatyadav800]

🙏🏻

[@amjadtamboli1212]

Well done 👌👌👌

[@pawankumarpandit1822]

love you sir that's great explanation

[@ashequeawal]

Great Presentation. ❤❤

[@ppp6004]

Best explanation, Please add more video on this topics

[@ranveermahato7834]

Thanks for making this video

[@200dayschallenge]

Thank you Bhai ❤