Cap Table Calculator
- The left column is the current holding position in the startup.
- The middle column is the new round information
- The right column is the scenario post new investment
Why We Build This Calculator?
This cap table calculator for startup founders helps them understand how much equity they will own in their company under different circumstances. This information is critical in understanding the company’s valuation and potential return on investment.
The calculator allows founders to input different variables, such as the amount of money invested, the pre-money valuation, and the percentage ownership of the company. These variables can be changed to see how they would affect the founder’s equity stake.
For example, if the percentage of ownership decreases, the founder will own less of the company in exchange for a higher valuation. This is important to know because it can help founders make decisions about how to negotiate their equity stake with investors.
The cap table calculator is a valuable tool for startup founders to use in order to understand their potential equity stake in their company.
How To Use The Cap Table Calculator
Under the “Pre Investment Details” fill out the current holding structure of your startup. Typically we have 3 groups, the founders, the current investors and the "ESOP" (the option plan). In this part fill out the percentage of the current holding on a fully diluted basis.
Important – make sure the total current holding reaches 100%.
The next column is “New Investment Details”, here you need to fill out the startup pre-money valuation and the expected investment amount. The new investment will affect the founders, current investors and employees’ holdings (via their options) and determine the new investors’ stake in your startup.
The “Post Investment Details” will reflect the change in the startup holdings post the new investment.
Cap Table Template
If you are interested in building a comprehensive cap table that will serve you well in the "due diligence" process and keep accurate records of your startup shareholders’ holdings, we strongly recommend you download our Cap Table Template.
It will save you time and eliminate any guesswork, just plug the numbers and get a clear picture of your and other shareholders’ holdings (including ESOP).