Maintaining a clean, accurate cap table for an operating company is difficult, and especially difficult in Excel. But when you want to project how rounds of financing and the terms on a term sheet impact ownership, a spreadsheet can be great.
That's why I built this cap table model, to help demonstrate and model how a cap table works, focused on demonstrating:
- How share prices, share issuances and valuation through multiple rounds of financing impacts the value and ownership of founders and investors (e.g. dilution)
- How a convertible note converts to equity and how discount rate and cap impacts conversion
- How a premoney and postmoney option pool works, and the mechanics behind how each impacts valuation
- How liquidation preferences work, including participating preferred and participation caps
- How to create a waterfall analysis of proceeds to different classes of investors at exit.
And I wanted it to be useful and easy to use; there are some simplifying assumptions used in the model explained in the FAQ sheet, and all the calculations and inputs are on a single sheet so you can see exactly how the assumptions impact the results.
Download for free using the code "free".
Details or questions, see http://foresight.is/learn/cap-table
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- Taylor Davidson