Below is a cap table example from one of CFI’s many free excel templates. Creating and managing a Cap Table is crucial for any startup, and using an Excel sheet is one of the most popular ways to do so. In this blog post, we discussed the different chapters of a Cap Table Excel sheet and https://quickbooks-payroll.org/ the importance of each column. Note that our $3.6M pre-money offer is 10% less than the founder’s $4M pre-money expectation. The final outcome for the entrepreneur in all of the above exit scenarios shows about a 5% to 6% difference in what they will ultimately receive upon an exit.
- Additionally, the tool provides a Common Stock Management feature that manages the allocation of common stocks to shareholders.
- With more capital raised and potentially more actors being involved in your business plan, the cap table may become messy and hard to comprehend.
- By maintaining an up-to-date record of all shareholders, equity allocations, and investment rounds, Alex can quickly provide accurate information to investors and employees, fostering trust and transparency.
They want to avoid any potential litigious situations that may put them at loggerheads with other investors. They want to sit at the top so that they can be paid back before other investors in case a liquidity event occurs. The company’s founders are listed first in the table, followed by executives and other employees who own equity, and then investors such as angel investors and venture capitalists.
Breaking Down Key Sections of the VC Term Sheet
The Capitalization Table is tracked by venture capital (VC) firms to provide a summary of the current capitalization (i.e. equity ownership) in a startup or venture-backed business. The stock option tracker helps you to manage and track the stock options that are issued to employees, directors, and other stakeholders. It helps you to keep track of vesting schedules and expiration dates, as well as calculate the dilution that occurs when new stock options are issued. The Cap Table Excel allows you to calculate the pre-money and post-money valuations of your company, as well as the share price for each round of financing.
In short, cap table templates are essential for startups, investors, and professionals alike. They bring clarity and efficiency to equity management, ensuring that everyone stays informed and engaged in the decision-making process. Although companies mainly focus on investors and executives, most companies are becoming transparent with their employees about cap tables. This helps in retaining well-performing employees and keeping them motivated to continue serving the company.
I have made a rough guide to using the cap table template which is viewable below on this blog. In addition to the cap table, I have integrated a waterfall returns analysis so you can calculate exactly how much people will earn and at different exit valuation scenarios. A cap table is something that every startup needs, but something no one really knows how to do.
You can also use the shareholder register template to manage the share ownership and keep the records up to date. The Cap Table Excel is a startup equity management software designed to help you keep track of your equity Capitalization Table VC Example + Excel Template distribution and ownership structure. Below are some of the purposes and benefits of using the Cap Table Excel. Fortunately, in our universe, Alex uses a comprehensive cap table template from Spreadsheet.com.