VC Waterfall

Angel Dilution & Cap Table Waterfall Workbench

Kevin Durant (35V) Hugging Face $250K Seed to $60M+ Exit Model
Grounded CoinDesk Case KD/35V invested $250k in early Hugging Face round (~$10M post) yielding ~$60M+ at Nvidia $12.9B milestone valuation (~240x MOIC).
Angel Initial Check
$250,000
2.50% initial stake at Seed
Final Exit Ownership
0.47%
Diluted by 81.2% over 5 rounds
Angel Exit Proceeds
$60,630,000
+$60.38M net gain
Multiple & Est. IRR
242.5x
~118.4% IRR over 6.5 yrs
Exit & Waterfall Parameters Dynamic Liquidation
$12,900,000,000
$50M $4.5B (Series D) $12.9B (Nvidia) $25B
Angel Pro-Rata Reinvestment
Invest follow-on capital to prevent dilution
Series C Secondary Cashout
Liquidate 35% of angel shares at $2.0B post
$250,000
Financing Rounds Pipeline 5 Rounds
Exit Proceeds Waterfall ($ Distributions) $12.90B Distributed
Comparing Common, Preferred Seniority Tranches & Angel Payout All Series convert to Common (Exit > Pref Hurdle)
Ownership Evolution Across Rounds (%) Dilution Curve
Post-Financing Cap Table & Waterfall Payout Schedule Fully Diluted Basis
Shareholder Class Invested ($) Shares Ownership % Liquidation Pref Exit Payout ($) Net MOIC
Key Venture Mechanic: In early-stage generative AI deals like Hugging Face, angel checks take the brunt of 4–5 subsequent massive dilution cycles (option expansions + successive $40M–$235M rounds). However, hyper-exponential valuation leaps from ~$10M post to $12.9B overpower an 80%+ dilution drag, turning a $250k bet into generational $60M+ liquidity.