Capitalization Table

Structuring an equity capital deal requires a capitalization table. A capitalization table or “cap” table summarizes the ownership position of all shareholders of a company.

The capitalization table is usually created in an excel spreadsheet that shows the total amount of securities issued by the company.

It typically includes the amount of investment obtained from each investor (or type of investor) and how the securities are distributed. For example, are they in the form of common and preferred shares, options, warrants, etc., and what are the respective capitalization ratios?

Understanding the arithmetic of share and deal structures is critically important to entrepreneurs because this understanding can make a difference in ownership and control issues. The following examples and explanations will give you an appreciation of the impact equity investments can have on your share structure. Therefore, armed with this understanding, you can anticipate what deals and/or term sheets optimize your position in any given round of financing.

This capitalization table excel model will help you understand pre and post money valuations; in addition to the changing values as various rounds of financing are undertaken.

It will show you how ownership positions may change with each ensuing financing round. This is useful in seeing the impact of any deal on the share structure of a company and will help in getting the share structure of the company that is optimized.

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Capitalization Table Model

Structuring an equity capital deal requires a capitalization table. A capitalization table or “cap” table summarizes the ownership position of all shareholders of a company. This capitalization table spreadsheet model will help you understand pre and post money valuations; in addition by changing values it will show you how ownership positions may change with each ensuing financing round. This is useful in seeing the impact of any deal on the share structure of a company. FREE DOWNLOAD!

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