Entrepeneurs starting or growing their businesses can find plenty of free advice on the Internet, but precious few practical tools. The new Web publishing paradigm in the form of blogs, social networks, wikis, etc, is beginning to change that. For one, we now have a top-notch blog courtesy of Brad Feld devoted to answering entrepreneurs' questions: Ask the VC. We have Harvard professor Noam Wasserman's compendium of Founder Frustrations. Then we have the slightly more unorthodox Venture Hacks, which shows entrepreneurs how to subvert some typical investor ruses.
Now startup mentor Philip Baddeley is providing a practical tool for understanding the effects of equity dilution on the value of founder holdings. The Equity Fingerprint is a way to understand the rate at which the increase in value of your business counteracts your equity dilution as you raise capital. I'm not sure you can do a lot of real planning with this tool since you can't know the shape of future funding rounds, but it is certainly a useful illustration of a topic which is often misunderstood by entrepreneurs and badly communicated by VCs.