Deal Terms
Fully Diluted
The total number of shares outstanding assuming all options, warrants, and convertible securities have been exercised — representing true economic ownership.
Fully diluted share count represents the maximum potential shares outstanding if every option, warrant, convertible note, SAFE, and other security were exercised or converted. It's the most accurate picture of economic ownership in a company. When VCs calculate ownership percentages, they always use fully diluted share count to avoid being surprised by hidden dilution. Example: A company has 10M shares outstanding but also has an option pool of 1M shares, 500K warrant shares, and $1M in SAFEs that will convert to 100K shares. Fully diluted count is 11.6M — actual ownership percentages are lower than the basic count suggests. Always understand your fully diluted ownership, not just basic share count.