Category: Modeling topics
-
01 Pre-funding cap tables and equity grants
TL;DR: If you’re the a founder of a new startup, it’s simple to use Excel to create your first capitalization table, calculate outstanding and fully diluted ownership, and create an option pool (stock plan) based on a target percentage using Tables, circular calculations and Goal Seek. Download the open-source cap table and the example spreadsheet.…
-
02 SAFEs and convertible notes
TL;DR: If you’re thinking about a seed round involving SAFEs or convertible notes, you can use Excel to model their effect on your common stock. No matter how simple the documents may seem, never just “sign and close” without thinking through the effects of dilution. Download the open-source cap table and the example spreadsheet. *…
-
03 First preferred equity financing and pool expansion
TL;DR: Once you’re ready to raise a “real” equity round, such as Series Seed or Series A, use Excel to consider the effects of an option pool increase and the conversion of your SAFEs and convertible notes. Download the open-source cap table and the example spreadsheet. * * * As I discussed in the previous…
-
04 Participation rights and ‘Major Investors’
TL;DR: Excel isn’t just for modeling economics; you can also use it to quickly find critical information about which investors are entitled to which rights. In the case of participation rights in a future equity financing, create a separate table to keep track of how much of the next round your current investors are entitled…
-
05 Voting cheat sheet
TL;DR: After a priced equity round, keeping track of various stockholder voting rights can get complicated. Use Excel to create a voting tracker to make it simpler. Download the open-source cap table and the example spreadsheet. * * * Your Series B is fast approaching, and it’s time to think about soliciting stockholder approval to…
-
06 Anti-dilution protection in a down round
TL;DR: If a tight fundraising market might mean a down round for your startup, you might be in for a painful squeeze. But at least Excel can help sort out the potential dilution. Download the open-source cap table and the example spreadsheet. * * * Unfortunately, although your blockchain-based frozen-banana delivery app is crushing it,…