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by Undo Capital
December 15, 2025
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What Is Share Price?

Share price is the cost of a single share in a company at the time of purchase, typically determined during a funding round based on the company’s valuation and total number of shares.

Share Price Meaning

The share price in startup fundraising reflects how much investors pay for each unit of equity. It is usually calculated by dividing the company’s pre-money valuation by the number of existing shares, then adjusted for any new shares issued in the round. A clear share price definition helps founders and investors model dilution, determine ownership percentages and understand how valuations translate into actual equity stakes. Share price also becomes an anchor for future rounds, option grants and fully diluted cap table planning.

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Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.