How To Make A Cap Table

How do you make a cap table?

How to Make a Cap Table Authorized shares: Number of shares the company is allowed to issue. Outstanding shares: Number of shares held by all shareholders in the company. Unissued Shares: Number of shares that have not been issued. Shares reserved for stock option plan: Unissued shares reserved for future hires.

What is a cap table template?

Thus the cap table template of a startup is the blueprint based on which the startup founders, investors, and financial analysts decide on present and future scenarios, like who has the voting right, who deserves how much of the profits, whom to pay first in case of dilution, who should receive dividends – all this.

What is included in a cap table?

A capitalization table (or “cap table”) is a list of all the securities your company has issued and who owns them. Securities include stock, convertible notes, warrants, and equity grants.

How do you fill a cap table?

Although there is no right way to format your cap table, it is typically laid out in an Excel spreadsheet. The names (and sometimes addresses) of the shareholders are in the left column with the capital contributions and units in the subsequent columns to the right.

What is a start up cap table?

A capitalization table, also known as a cap table, is a spreadsheet or table that shows the equity capitalization for a company. A capitalization table is most commonly utilized for startups and early-stage businesses but all types of companies may use it as well.

How do you calculate cap table dilution?

To calculate the shareholders’ diluted participation, we proceed to divide the number of shares assigned to each shareholder by the new total nominal value of stocks. In our example, the total number of shares will amount to 30,000 (25,000 initially distributed to founders, and 5,000 new issued shares).

Does a cap table include debt?

All debt should be recorded in a section of the cap table. It is helpful to include the following information in the cap table document so you will understand how much equity might be issued to noteholders at some point in the future: Date the debt was incurred.

What is a fully diluted cap table?

A fully-diluted cap table is a version of the cap table that shows the total number of currently outstanding shares for each security and the totals from each convertible security if those were to be exercised.

How much does Carta cost?

Carta pricing starts at $2800.00 per year. There is a free version. Carta does not offer a free trial. See additional pricing details below.

What should I look for in a cap table?

4 Things Investors Secretly Look For in Your Cap Table Breaks. Cap tables containing so many investors that the table requires page breaks are a red flag for most investors. Loners. The Cap Table shows how much capital investors contributed and who owns which percentages. Impossibles. Favorites.

What is a clean cap table?

A clean cap table means that it is up-to-date for the latest transactions, accurately reflects company ownership, and shows options available to employees or capital providers. All this information needs to be quickly assessed to understand shares authorized, issued, and outstanding.

Is a cap table legally binding?

When an investor invests in you, they want shares in return. With each round, and each new investor, the share ownership starts becoming more and more complex – not to mention, legally binding. If you don’t have a cap table, you can’t do this.

Why do investors want cap tables?

Investors want to see you reserving enough equity for yourself and your future employees. A healthy cap table illustrates your business’ potential for growth and shows your solid judgement as CEO.

How does Carta make money?

As a SaaS database, Carta uses its software to assist startups and private companies with their financing and investors with the tracking of their positions. In addition to managing cap tables, the company makes money by valuations, scenario modeling, private company liquidity, ASC 718 reporting, and other services.

Do founders get preferred stock?

Founders don’t get preferred stock. But it’s nearly impossible to raise venture capital without issuing preferred stock, or preferred shares. In most cases, VCs today won’t hand over a dime in exchange for common shares, the form of equity extended to founders and employees.

How does cap table dilution work?

Dilution refers to a decrease in an owner’s percentage interest in the company. If there are 4 million shares outstanding and you hold 1 million shares, that equates to 25% of the outstanding stock. Sometimes the exact number of shares can not be determined. Sep 8, 2012.

Do startups share cap table?

Employee equity management is an important part of business strategy. A cap table for startups is one of the most highly guarded documents. It is practically a blueprint of all stakeholder activity in a startup. Stakeholders include founders, employees, advisors, consultants, and investors.

What is par value in cap table?

Par value, also known as nominal value, is the face value of a bond or the stock value stated in the corporate charter.

How do you calculate post-money valuation from cap table?

Calculating post-money valuation is straightforward. You take the dollar amount of the investment and divide it by the percent that the investor is getting. In our example above $2 million is divided by 10% yielding a post-money valuation of $20 million.

How do you calculate price per share on a cap table?

Price per share = Pre-money valuation / pre-money shares. Post-money shares = Post money valuation/ price per share. Investor ownership = Investor shares / post-money shares.