Cap Table with Derivative Instruments, Investor Returns and Charts

Description
Most startups are initially financed by their founders. They contribute relatively small amounts of money for the company to make its first steps. If the business idea proves feasible, there will be the first real funding round (“seed” funding) when the company receives financing from external parties (often referred to as “angel investors”).

If, following this round, the company performs well, there can be further drawdowns of external financing to keep the business growing. In most real-life examples there will be up to three rounds (Series A, Series B and Series C), after which the company can go public or be sold to a strategic investor. At each funding round there will be changes in equity shares held by current shareholders based on the amounts contributed by the new investors and the market value of the company.

This template allows to model up to six investment rounds and full exit for up to 12 common-stock investors. It includes key profitability metrics for each investor (IRR, equity multiple and gross return).

The model also includes calculations for a SAFE (simple agreement for future equity), employee stock options and convertible notes.

You can use this cap table to keep track of your investors or to build it into your financial models and analyze financing alternatives.

The table is accompanied by five professionally designed magazine-quality charts showing:

- changes in company valuation resulting from investor contributions and market value uplifts
- composition of final equity value by investor and overall equity value increase
- a snapshot of each investors contributions, distributions and profitability
- holding period for each investor
- equity share by shareholder and by investing round