Equity Calculator model with Option Pool Expansion
Originally published: 30/01/2017 18:45
Publication number: ELQ-70909-1
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Equity Calculator model with Option Pool Expansion

Model cap table designed for founders to find company value and equity impact.

During the SeedCamp’s hackathon, Ali, Will and myself decided to bring sources together to help entrepreneurs understand how it is that equity is raised and the consequences it may have on the founders.

This means that we aim at making founders aware and understanding of the figures as well as the negative effects of raising capital and giving away equity.

When it comes to finding the value of your company and getting to those last definitive calculations depicting the effects on your equity, you may find yourself in a very tedious and confusing process, which is why we are here to help!

The downloadable tool includes the sample excel model as well as the online methodology.

For you to further understand the terminology in this cap table, you may find exact terms in the online methodology of this model. It explains pre-post money valuation, option pools and round size.

Do keep In mind that the model is for illustration purposes, so do consult with an advisor if you are to use the model as your own. Also, the model does not include convertible note conversions and it is currency agnostic.

In case you want to use convertible notes and include them in your round, you can use this variant of the model attached with notes on how to do the conversion: http://bit.ly/17kHlSA

For the model to work, run it on Excel and with the circular calculations switched on. You may do this by going to Preferences (Macbook Excel) then, calculation, followed by iteration and lastly, click on limit iteration.

This Best Practice includes
1 Excel sheet, 1 methodology

Carlos Eduardo Espinal offers you this Best Practice for free!

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