Portfolio Management

Follow-On Reserve Calculator

Calculate exactly how much capital to reserve for follow-on rounds to maintain your ownership.

Initial Investment

Initial check

Entry valuation

Pro-rata rights (% to exercise)

Next Round

Pre-money valuation

Round raise

Round After That

Exercise pro-rata in this round too

Pre-money valuation

Round raise

Reserve Analysis

Total reserve needed

$746K

$1.25M total commitment in company

Entry ownership5.00%

Round 2 pro-rata cost$250K

Ownership after Round 2 (with pro-rata)4.96%

Ownership after Round 2 (without)4.29%

Round 3 pro-rata cost$496K

Final ownership (with pro-rata)4.94%

Final ownership (no pro-rata)3.78%

Ownership protected by pro-rata1.22pp

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How to Use This Tool

Enter your fund size, number of initial investments, and follow-on strategy. The calculator shows how much capital to reserve for follow-ons and how many rounds you can participate in.

Why This Matters

Follow-on reserves are how you double down on winners. If your best portfolio company raises a Series A and you can't exercise your pro-rata rights, you're leaving returns on the table. But over-reserving means fewer initial bets and less diversification. Finding the right balance is critical.

What to Do With Your Results

1Model different reserve ratios — what happens if you reserve 30% vs. 50% vs. 70%?
2Plan which companies get follow-on — not every company deserves additional capital.
3Consider the concentration risk — how much of your fund should be in your top 3 companies?

Learn More

→How Pro-Rata Rights Work and Why They Matter →Follow-On Strategy for Angel Investors

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