Startup Cap Table
Originally published: 23/03/2021 08:45
Publication number: ELQ-82460-1
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Startup Cap Table

Multiple round cap table with investor returns

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 five investment rounds and full exit for up to 10 common-stock investors. It includes key profitability metrics for each investor (IRR, equity multiple and gross return).

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

NOTE: In addition to this one, I have published two more advanced cap tables as follows:

1. Cap table with investor returns and charts. This table is accompanied by professionally designed magazine-quality charts showing equity balances and movements. Use them to provide additional analytics and insight to your clients and co-investors! This table is available at this link:
https://www.eloquens.com/tool/rrxkHea9/startups/cap-tables/cap-table-with-investor-returns-and-charts

2. Cap table with derivative instruments, investor returns and charts. This table includes the calculations of SAFE (simple agreement for future equity) and employee stock options. Here is a link to this table:
https://www.eloquens.com/tool/MQ9Ah70l/startups/cap-tables/cap-table-with-derivative-instruments-investor-returns-and-charts

This Best Practice includes
1 Excel file

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Further information

To model capital structure of a startup JV with several investors and multiple investing rounds

You have a startup with several partners investing in several rounds

You have a more complex structure than what this table is designed for. Check out my extended cap tables described above or contact me to design a table which fits your situation.

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