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Startup runway and dilution

startup_runway_dilution
Read-onlyIdempotent

Model early-stage startup cash runway calendar exhaustion date, Post-Money SAFE note conversion cap dilution, and Series A unallocated option pool shuffle waterfall.

Behavior: Deterministic, idempotent calculation with zero external side effects. Computes net burn = grossBurn - revenue; Runway months = cashOnHand / netBurn. Models post-money SAFE equity percentage = safeInvestment / postMoneyCap. Simulates Series A pre-money option pool expansion (diluting existing holders prior to lead investor entry) and calculates founder post-financing ownership percentage.

Usage Guidelines: Use for venture capital fundraising planning, startup cash runway tracking, and cap table dilution modeling. Do not use for discounted cash flow or IRR project appraisal; use npv_irr instead.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
as_of_dateYesCivil date YYYY-MM-DD. Selects the rule pack in force on that date. Required: the engine will not assume a date.
cashOnHandNoCurrent cash reserves in bank in USD ($). Must be positive.
postMoneyCapNoAgreed valuation cap on the Post-Money SAFEs in USD ($).
monthlyRevenueNoMonthly recurring revenue (MRR) or cash collections in USD ($/mo). Default is 15000.
safeInvestmentNoTotal capital raised via Post-Money SAFE notes in USD ($).
seriesAPreMoneyNoAgreed Series A pre-money company valuation in USD ($).
monthlyGrossBurnNoTotal monthly cash operating expenses in USD ($/mo). Must be positive.
seriesAInvestmentNoNew equity capital invested by Series A lead investors in USD ($).
optionPoolExpansionPercentNoRequired post-closing unallocated employee stock option pool percentage (e.g. 10 for 10%).

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
runwayNo
disclaimerNo
cap_table_dilutionNo
statutory_rate_packNo
monthly_cash_scheduleNo

Schema Changelog

Changes observed during successful MCP inspections.

  1. Changed1 schema field changed
    • changedOutput schema / (root)
      Previous value: -nullNew value: +{
      +  "additionalProperties": true,
      +  "properties": {
      +    "cap_table_dilution": {
      +      "type": [
      +        "object",
      +        "null"
      +      ]
      +    },
      +    "disclaimer": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "monthly_cash_schedule": {
      +      "type": [
      +        "array",
      +        "null"
      +      ]
      +    },
      +    "runway": {
      +      "type": [
      +        "object",
      +        "null"
      +      ]
      +    },
      +    "statutory_rate_pack": {
      +      "type": [
      +        "object",
      +        "null"
      +      ]
      +    }
      +  },
      +  "type": "object"
      +}
  2. Changed2 schema fields changed
    • addedInput schema / properties / as_of_date
      Added value: +{
      +  "description": "Civil date YYYY-MM-DD. Selects the rule pack in force on that date. Required: the engine will not assume a date.",
      +  "example": "2026-09-26",
      +  "pattern": "^\\d{4}-\\d{2}-\\d{2}$",
      +  "type": "string"
      +}
    • addedInput schema / required
      Added value: +[
      +  "as_of_date"
      +]
  3. Changed8 schema fields changed
    • changedInput schema / properties / cashOnHand / description
      Previous value: -"Current cash in bank in USD ($)"New value: +"Current cash reserves in bank in USD ($). Must be positive."
    • changedInput schema / properties / monthlyGrossBurn / description
      Previous value: -"Monthly operating cash outflows ($/mo)"New value: +"Total monthly cash operating expenses in USD ($/mo). Must be positive."
    • changedInput schema / properties / monthlyRevenue / description
      Previous value: -"Monthly recurring revenue MRR ($/mo)"New value: +"Monthly recurring revenue (MRR) or cash collections in USD ($/mo). Default is 15000."
    • changedInput schema / properties / optionPoolExpansionPercent / description
      Previous value: -"Required unallocated post-close option pool %"New value: +"Required post-closing unallocated employee stock option pool percentage (e.g. 10 for 10%)."
    • changedInput schema / properties / postMoneyCap / description
      Previous value: -"Post-money valuation cap ($)"New value: +"Agreed valuation cap on the Post-Money SAFEs in USD ($)."
    • changedInput schema / properties / safeInvestment / description
      Previous value: -"Post-money SAFE investment amount ($)"New value: +"Total capital raised via Post-Money SAFE notes in USD ($)."
    • changedInput schema / properties / seriesAInvestment / description
      Previous value: -"Series A new lead investment amount ($)"New value: +"New equity capital invested by Series A lead investors in USD ($)."
    • changedInput schema / properties / seriesAPreMoney / description
      Previous value: -"Series A pre-money agreed valuation ($)"New value: +"Agreed Series A pre-money company valuation in USD ($)."
  4. First observed

TDQS

A4.9/5.0
Behavior5/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare readOnly, idempotent, non-destructive, and closed-world behavior. The description adds substantial beyond that: deterministic calculation, zero external side effects, and concrete formulas for net burn, runway, SAFE equity percentage, and option pool dilution.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is front-loaded and structured into purpose, behavior, and usage guidelines. Despite its density, each section adds necessary information for a complex multi-parameter financial model.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

The input schema is fully documented and an output schema exists, so return values need not be explained. The description supplies the purpose, behavioral model, formulas, and usage exclusions needed to call the tool correctly.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%, so the baseline is 3. The description goes further by naming relationships among parameters, such as net burn = grossBurn - revenue and SAFE equity = safeInvestment / postMoneyCap, which helps an agent reason about how inputs interact.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description uses specific verbs and resources: models startup cash runway, Post-Money SAFE cap dilution, and Series A option pool expansion. It clearly distinguishes this tool from the explicitly named sibling npv_irr.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

It gives explicit when-to-use cases (venture capital fundraising planning, runway tracking, cap table dilution modeling) and an explicit when-not-to-use exclusion with the alternative tool (npv_irr for DCF or IRR).

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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