Cap Table Templates for Startups Excel Downloads

The equity distribution table provides a clear and concise summary of the ownership structure of your startup. It shows who owns what percentage of the company and how much each shareholder is entitled to receive in case of a sale or liquidation of the business. Startups that receive funding through convertible notes can use the Convertible Note Calculator feature to calculate the number of shares to be issued to investors. The Cap Table Excel also offers a Dilution Management Tool that helps the startup to manage the impact of additional rounds of funding on existing shareholders.

• The executives must manage all these transactions and documents accurately to show the events since the company’s inception.
• The term sheet is short, usually less than 10 pages, and is prepared by the investor.
• A more complex table may also include details on potential new funding sources, mergers and acquisitions, public offerings, or other hypothetical transactions.
• In the meantime, try out these free Google sheets to help you build a well structured cap table along with a waterfall analysis for exit scenario modeling.
• Apart from tabulating the ownership structure, a cap table also helps track important events such as stock issuance, stock transfers, cancellation of shares, and conversion of debt to equity across various vesting schedules.

While cap table software programs are available, most cap tables are still tracked in an Excel spreadsheet similar to the one shown above. Comparatively, it can be viewed in conjunction with the shareholders’ equity portion of the balance sheet, which also details the equity capital structuring of a firm. Track share dilution post-fundraising, including those for founders and investors. The Cap Table Excel template allows for the creation of multiple scenarios, allowing the user to compare the impact of different scenarios on the company’s equity position. This feature helps businesses make informed decisions about their equity position. Changes in the equity holdings can be recorded and analyzed in real-time with Cap Table Excel.

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It can be used to update investors on important company developments and progress, which can help to build good relationships and foster trust. The Cap Table Excel can help you stay compliant with securities laws by ensuring accurate record-keeping and disclosure of ownership structures. By using the Common stock management feature, you can ensure that you are not violating any regulations and avoid any legal issues. The Cap Table https://quickbooks-payroll.org/ Excel provides a comprehensive view of your company’s equity distribution and ownership structure that can be essential in facilitating mergers and acquisitions. Investors and potential buyers will find it helpful in determining the value of the company and understanding its ownership structure. Use a cap table template to stay in control of your company’s equity and ensure your entrepreneurial journey is a rewarding one.

• If you perform a Google search for the term “Cap Table”, you will end up with dozens of options to choose from.
• From the perspective of an entrepreneur and existing investors, there are several advantages and disadvantages of raising outside capital.
• Cap Table Excel is a user-friendly and easy-to-navigate equity tracking spreadsheet that is designed for startups and small businesses.

Assuming you are dealing with reputable investors, you won’t ever really have to change this (Such as account for multiple liquidation preferences and participating preferred shares). The more advanced features, such as option pools, convertible debt, and liquidation preferences will also be introduced, which should be very applicable to anyone interested in a career in venture capital. The Cap Table Excel template can be easily integrated into other financial models, allowing for greater analysis of the company’s financial position. This feature makes it a valuable tool for financial planning and forecasting. The right of first refusal (ROFR) provision gives the company and/or the investor the option to purchase shares being sold by any shareholder before any other 3rd party. Pre-money valuation simply refers to the value of the company before the financing round.

Equity and Share Ownership Management

Company executives want to know the payouts they will receive from their ownership percentage if the company sells or is liquidated. Companies that are transparent and organized have higher chances of retaining their employees, even Capitalization Table VC Example + Excel Template when the firm is facing financial distress. Companies are constantly evolving, and so their capitalization tables must be continuously updated as well. For example, startups run several funding rounds to support capital needs.

So while strategic M&A has historically accounted for the majority of exits and returns, these recent high-profile IPOs of venture-backed unicorns are creating all-time high returns for VCs. Moreover, while the vast majority of VCs exit their investments through acquisitions, the dollar amounts of these exits are derived largely from IPOs, and more recently, from acquisitions. This means that to meet the VC firm’s investor expectations, those who make money on the investment must make up for those that do not make money (i.e., the winners need to return a multiple of the fund). Thus, all stakeholders can accurately calculate their share of the proceeds in a potential exit (i.e. liquidation event such as a sale to a strategic or IPO). Let’s play out a scenario that Christopher and I ran into recently with a company in which we were looking to invest. At a high level, here are the key facts about the company today, along with a few assumptions we will make about the future of the company.

To assist with employee equity compensation

Once a company goes public, however, a list of insiders and institutional shareholders is made available. The capitalization table shows each investors’ equity capital stake in the business, which is calculated by multiplying the share price by the number of shares owned. In most cases, the names of the security owners will be listed on the Y-axis and the types of securities on the X-axis. Overall, a capitalization table shows the total market value of a company and its components.

In the last few years, however, there has been a noticeable move towards deals of larger magnitude. In terms of the expected exit date, the VC firm wants to exit by Year 5 to return the funds to its investors (LPs). Valuation is perhaps the most important element negotiated in a VC term sheet.