# Microsoft — Capital Time Machine

Microsoft’s venture-backed ownership and preferred conversion are documented in its 1986 prospectus. The calculator starts at its $21 IPO because a reliable cash subscription price is not established here.

Canonical citation: https://capitaltimemachine.com/private/microsoft

Ticker: MSFT
Sector: Enterprise software
Public-market route: IPO
Evidence reviewed: 2026-09-24

## How to use this research

Selected historical funding and listing evidence, not a complete private cap table or live quote. Funding totals, company valuations and per-share prices are different measures. A hypothetical value is not actual sale proceeds; investor access is not established.

## Funding and listing history

### incorporation — Private corporation formed

Date: 1981-06-25
Event type: Formation

Microsoft incorporated before its public listing. Its later prospectus identifies venture fund ownership and preferred shares.

Source: [Microsoft corporate timeline](https://news.microsoft.com/facts-about-microsoft/)
Source location: June 25, 1981 incorporation and March 13, 1986 public listing.

Source: [Microsoft 1986 IPO prospectus · archival copy](https://www.begintoinvest.com/wp-content/uploads/2018/03/Microsoft_prospectus.pdf)
Source location: Capitalization, preferred-stock conversion, principal shareholders and financial statements. This is a copy of the company prospectus, not editorial price data.

### preferred — Pre-IPO preferred capitalization

Date: 1985-06-30
Event type: Capitalization snapshot

500,000 preferred shares were outstanding; the IPO conversion produced 1,000,000 common shares. A liquidation or redemption value is not automatically the original investment price.

Source: [Microsoft 1986 IPO prospectus · archival copy](https://www.begintoinvest.com/wp-content/uploads/2018/03/Microsoft_prospectus.pdf)
Source location: Capitalization, preferred-stock conversion, principal shareholders and financial statements. This is a copy of the company prospectus, not editorial price data.

### ipo — Public offering

Date: 1986-03-13
Event type: IPO

Microsoft’s initial offer price was $21 per share.

Reported price: $21

Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

### splits — Nine subsequent splits

Date: 1987–2003
Event type: Share basis

The documented split factors multiply to 288 public shares per original IPO share.

Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

## Documented share calculations

### ipo — IPO offer price · $21

Starting price: 21 USD per starting share
Starting date or context: IPO · 1986-03-13

Base conversion: 1 common-share equivalents per starting share, before dated public splits

Starts at the public offering, not a private funding round. Uses the original offer price and the share adjustments documented below.

Public trading begins: 1986-03-13
Supported ending dates begin: 1986-03-13
Share basis reviewed through: 2003-02-18

The ending share price and its date must be supplied by the user.

Formula: amount ÷ 21 × (1) × applicable dated public splits × ending share price. 

Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

## Later share adjustments

1987-09-21: multiply share units by 2.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

1990-04-16: multiply share units by 2.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

1991-06-27: multiply share units by 1.5.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

1992-06-15: multiply share units by 1.5.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

1994-05-23: multiply share units by 2.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

1996-12-09: multiply share units by 2.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

1998-02-23: multiply share units by 2.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

1999-03-29: multiply share units by 2.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

2003-02-18: multiply share units by 2.
Source: [Microsoft investor FAQ](https://www.microsoft.com/en-us/investor/faq)
Source location: March 13, 1986 IPO at $21; stock-split table with post-split closing dates.

No separate share-class distribution is modeled.

## Coverage gaps and limitations

- The preferred stock’s $2 redemption value is not treated as a verified cash purchase price. A private return model requires that additional evidence.

- Technology Venture Investors’ ownership does not establish access for an individual investor; dividends and distributions are excluded.

Entered prices and later-date share-basis assumptions are unverified. Excludes fees, taxes, dividends, warrants and other distributions; fractional shares are illustrative. Historical investor allocations, minimums and selling rights are not established.

Methodology: https://capitaltimemachine.com/methodology

Research terms: https://capitaltimemachine.com/terms