Exit Waterfall Simulator
See how exit proceeds are distributed.
The Exit Waterfall Simulator models how the proceeds of an exit are split once preferred terms are applied.
Exit scenario
- Exit Valuation.
- Preference Stack — the total preferred amount.
- Liquidation Preference Multiple, for example 2.5x.
Stakeholders
Add each stakeholder with their Name, Type (Founder, Investor, or Employee), Shares, and Pref Amount.
Output
- Total Payout.
- Preference Overhang — how much comes off the top before common shares see anything.
- Proceeds Distribution across Founders, Investors, and the Employee Pool.
Save your scenario, then select Analyze under AI Analysis for insights.
Please note: Preference overhang is the figure founders most often overlook. Model it before signing terms, not after.