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    Cap Table and Returns Template

    Uploaded by

    deepaknadig
    This document outlines the capitalization table (cap table) for NewCo Inc. at various stages: 1) Initial founding with 1,000,000 common shares held by founders. 2) A $1,000,000 Series A investment granting 416,667 preferred shares to two investors at a $3,000,000 pre-money valuation. 3) A $5,000,000 Series B investment granting 913,833 preferred shares to one investor at a $9,119,095 pre-money valuation. It also models potential exit scenarios, calculating investor proceeds and return multiples based on different exit values and accounting for liquidation preferences and conversion rights.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd

    Cap Table and Returns Template

    Uploaded by

    deepaknadig
    616 views5 pages
    This document outlines the capitalization table (cap table) for NewCo Inc. at various stages: 1) Initial founding with 1,000,000 common shares held by founders. 2) A $1,000,000 Series A investment granting 416,667 preferred shares to two investors at a $3,000,000 pre-money valuation. 3) A $5,000,000 Series B investment granting 913,833 preferred shares to one investor at a $9,119,095 pre-money valuation. It also models potential exit scenarios, calculating investor proceeds and return multiples based on different exit values and accounting for liquidation preferences and conversion rights.

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    cap table

    Original Title

    Cap Table and Returns Template.xls

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    © Attribution Non-Commercial (BY-NC)

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    This document outlines the capitalization table (cap table) for NewCo Inc. at various stages: 1) Initial founding with 1,000,000 common shares held by founders. 2) A $1,000,000 Series A investment granting 416,667 preferred shares to two investors at a $3,000,000 pre-money valuation. 3) A $5,000,000 Series B investment granting 913,833 preferred shares to one investor at a $9,119,095 pre-money valuation. It also models potential exit scenarios, calculating investor proceeds and return multiples based on different exit values and accounting for liquidation preferences and conversion rights.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    616 views5 pages

    Cap Table and Returns Template

    Uploaded by

    deepaknadig
    This document outlines the capitalization table (cap table) for NewCo Inc. at various stages: 1) Initial founding with 1,000,000 common shares held by founders. 2) A $1,000,000 Series A investment granting 416,667 preferred shares to two investors at a $3,000,000 pre-money valuation. 3) A $5,000,000 Series B investment granting 913,833 preferred shares to one investor at a $9,119,095 pre-money valuation. It also models potential exit scenarios, calculating investor proceeds and return multiples based on different exit values and accounting for liquidation preferences and conversion rights.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
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    NewCo Inc.

    Pro Forma Cap Table


    Start-up Capitalization

    Founders
    Options Granted
    Options Available
    Investor 1
    Investor 2
    Investor 3
    Total
    Pre-Money Valuation
    Price / Share
    Total $ Invested
    Post-Money Valuation
    Date

    Common
    1,000,000

    1,000,000

    Total
    1,000,000
    0
    0
    0
    0
    0
    1,000,000

    %
    100.0%
    0.0%
    0.0%
    0.0%
    0.0%
    0.0%
    100.0%

    Series A
    Investment

    $ 1,000,000
    $
    $
    $ 1,000,000
    $ 3,000,000
    $
    3.00
    $ 1,000,000
    $ 4,000,000
    6/30/2009

    Series A Funding
    Series A
    Post-Money
    FD
    Preferred
    Total
    %
    1,000,000 75.0%
    0.0%
    0.0%
    333,333
    333,333 25.0%
    0.0%
    0.0%
    333,333
    1,333,333 100.0%

    Founders diluted by 25%


    Investor desires 25%
    ownership.

    NewCo Inc.
    Pro Forma Cap Table
    Start-up Capitalization

    Founders
    Options Granted
    Options Available
    Investor 1
    Investor 2
    Investor 3
    Total
    Pre-Money Valuation
    Price / Share
    Total $ Invested
    Post-Money Valuation
    Date

    Common
    1,000,000

    1,000,000

    Total
    1,000,000
    0
    0
    0
    0
    0
    1,000,000

    %
    100.0%
    0.0%
    0.0%
    0.0%
    0.0%
    0.0%
    100.0%

    New Option Pool


    Pre-Money
    Total
    1,000,000
    0
    250,000
    250,000
    0
    0
    0
    250,000
    1,250,000

    New Options

    True Pre-Money: $

    %
    80.0%
    0.0%
    20.0%
    0.0%
    0.0%
    0.0%
    100.0%
    2,400,000

    Series A
    Investment

    $
    $
    $
    $

    1,000,000
    1,000,000

    $
    $
    $
    $

    3,000,000
    2.40
    1,000,000
    4,000,000
    6/30/2009

    Series A Funding
    Series A
    Post-Money
    Preferred
    Total
    1,000,000
    250,000
    416,667
    416,667
    416,667
    1,666,667

    FD
    %
    60.0%
    0.0%
    15.0%
    25.0%
    0.0%
    0.0%
    100.0%

    Including options in the pre-money calculation is


    very common in term sheets.

    Note the lower price per share despite same premoney valuation due to the new options. This values
    the pre-money company prior to options at $2.4

    NewCo Inc.
    Pro Forma Cap Table
    Start-up Capitalization

    Founders
    Options Granted
    Options Available
    Investor 1
    Investor 2
    Investor 3
    Total
    Pre-Money Valuation
    Price / Share
    Total $ Invested
    Post-Money Valuation
    Date

    Common
    1,000,000

    1,000,000

    Total
    1,000,000
    0
    0
    0
    0
    0
    1,000,000

    %
    100.0%
    0.0%
    0.0%
    0.0%
    0.0%
    0.0%
    100.0%

    New Option Pool


    Pre-Money
    Total
    1,000,000
    0
    250,000
    250,000
    0
    0
    0
    250,000
    1,250,000

    New Options

    True Pre-Money: $

    %
    80.0%
    0.0%
    20.0%
    0.0%
    0.0%
    0.0%
    100.0%
    2,400,000

    Series A
    Investment

    $
    $
    $
    $

    1,000,000
    1,000,000

    $
    $
    $
    $

    3,000,000
    2.40
    1,000,000
    4,000,000
    6/30/2009

    Series A Funding
    Series A
    Post-Money
    Preferred
    Total
    1,000,000
    250,000
    416,667
    416,667
    416,667
    1,666,667

    %
    60.0%
    0.0%
    15.0%
    25.0%
    0.0%
    0.0%
    100.0%

    New Option Pool


    Pre-Money
    Total
    1,000,000
    0
    161,000
    411,000
    416,667
    0
    0
    161,000
    1,827,667

    New Options

    True Pre-Money: $

    %
    54.7%
    0.0%
    22.5%
    22.8%
    0.0%
    0.0%
    100.0%
    9,119,095

    Series B
    Investment

    $
    $
    $
    $

    1,000,000
    4,000,000
    5,000,000

    $ 10,000,000
    $
    5.47
    $ 5,000,000
    $ 15,000,000
    6/30/2010

    Series B Funding
    Series B
    Post-Money
    Preferred
    Total
    1,000,000
    411,000
    182,767
    599,433
    731,067
    731,067
    913,833 2,741,500

    FD
    %
    36.5%
    0.0%
    15.0%
    21.9%
    26.7%
    0.0%
    100.0%

    % Preferred
    0.0%
    0.0%
    0.0%
    45.1%
    54.9%
    0.0%
    100.0%

    Note who controls a majority of Preferred. This is


    important for voting rights.

    NewCo Inc.
    Pro Forma Cap Table
    Start-up Capitalization

    Founders
    Options Granted
    Options Available
    Investor 1
    Investor 2
    Investor 3
    Total

    Common
    1,000,000

    1,000,000

    Total
    1,000,000
    0
    0
    0
    0
    0
    1,000,000

    %
    100.0%
    0.0%
    0.0%
    0.0%
    0.0%
    0.0%
    100.0%

    New Option Pool


    Pre-Money
    Total
    1,000,000
    0
    250,000
    250,000
    0
    0
    0
    250,000
    1,250,000

    New Options

    True Pre-Money: $

    Pre-Money Valuation
    Price / Share
    Total $ Invested
    Post-Money Valuation
    Date

    %
    80.0%
    0.0%
    20.0%
    0.0%
    0.0%
    0.0%
    100.0%
    2,400,000

    Series A
    Investment

    $
    $
    $
    $

    1,000,000
    1,000,000

    $
    $
    $
    $

    3,000,000
    2.40
    1,000,000
    4,000,000
    6/30/2009

    Series A Funding
    Series A
    Post-Money
    Preferred
    Total
    1,000,000
    250,000
    416,667
    416,667
    416,667
    1,666,667

    %
    60.0%
    0.0%
    15.0%
    25.0%
    0.0%
    0.0%
    100.0%

    New Option Pool


    Pre-Money
    Total
    1,000,000
    0
    161,000
    411,000
    416,667
    0
    0
    161,000
    1,827,667

    New Options

    %
    54.7%
    0.0%
    22.5%
    22.8%
    0.0%
    0.0%
    100.0%

    True Pre-Money: $

    9,119,095

    Series B
    Investment

    $
    $
    $
    $

    1,000,000
    4,000,000
    5,000,000

    Series B Funding
    Series B
    Post-Money
    Preferred
    Total
    1,000,000
    411,000
    182,767
    599,433
    731,067
    731,067
    913,833 2,741,500

    %
    36.5%
    0.0%
    15.0%
    21.9%
    26.7%
    0.0%
    100.0%

    % Preferred
    0.0%
    0.0%
    0.0%
    45.1%
    54.9%
    0.0%
    100.0%

    $ 10,000,000
    $
    5.47
    $ 5,000,000
    $ 15,000,000
    6/30/2010

    Exit Waterfall
    High Scenario
    $100,000,000
    $
    36.48
    6/30/2011

    Exit Value
    Value Per Share (as-converted basis)
    Exit Date
    Liquidation Preferences
    Series B 1x Straight Preferred
    Series B Dividend

    Date
    6/30/2010

    Total Series B Preference


    Convert to Common?
    Series A 1x Straight Preferred
    Series A Dividend
    Total Series A Preference
    Convert to Common?

    6/30/2009

    Dividend
    $
    0% $

    Per Share
    5.47
    -

    5.47
    TRUE

    $
    0% $

    2.40
    -

    Shares
    913,833 $
    913,833 $

    5,000,000
    -

    5,000,000

    $
    $

    1,000,000
    -

    1,000,000

    416,667
    416,667

    2.40

    Date
    6/30/2010
    $

    6/30/2009
    $

    TRUE
    $

    Remaining Common Proceeds

    $100,000,000

    Total Proceeds
    Series B
    Series A
    Common
    Options
    Total
    Multiple of Cost
    Series B
    Series A
    Check if Proceeds are above Preference:
    Series B
    Series A

    Dividend
    $
    0% $

    Per Share
    5.47
    -

    5.47
    FALSE

    $
    0% $

    2.40
    -

    Shares
    913,833 $
    913,833 $

    5,000,000
    -

    5,000,000

    $
    $

    1,000,000
    -

    1,000,000

    416,667
    416,667

    2.40

    5,000,000

    Lower than preferences of B but higher than A.

    B exercises preference .

    A converts to common.

    TRUE

    Total Preferences

    Common Proceeds
    Series B
    Series A
    Common
    Options
    Total

    Low Scenario
    $ 12,000,000
    $
    4.38
    6/30/2011

    Value per share if everyone converted to comon.


    Note it is greater than preferences of A and B.

    Shares
    913,833
    416,667
    1,000,000
    411,000
    2,741,500
    Per Share
    $
    36.48
    $
    36.48
    $
    36.48
    $
    36.48

    % of Proceeds
    33.3%
    15.2%
    36.5%
    15.0%
    100.0%

    $ 33,333,333
    $ 15,198,492
    $ 36,476,382
    $ 14,991,793
    $100,000,000

    % of Proceeds
    33.3%
    15.2%
    36.5%
    15.0%

    $
    $
    $
    $

    33,333,333
    15,198,492
    36,476,382
    14,991,793

    100.0% $100,000,000

    Shares % of Proceeds
    0.0%
    416,667
    22.8%
    1,000,000
    54.7%
    411,000
    22.5%
    1,827,667
    100.0%

    A/B convert to common and participate in Common


    proceeds.

    $
    $
    $
    $

    5.47
    3.83
    3.83
    3.83

    41.7%
    13.3%
    31.9%
    13.1%

    5,000,000

    7,000,000

    $
    $
    $
    $
    $

    1,595,842
    3,830,020
    1,574,138
    7,000,000

    $
    $
    $
    $

    5,000,000
    1,595,842
    3,830,020
    1,574,138

    B does not participate in Common proceeds.

    100.0% $ 12,000,000

    6.7x
    15.2x

    1.0x
    1.6x

    Important criteria of how well the investment


    performed. VCs typically aim for 4-10x returns.

    OK
    OK

    OK
    OK

    Important check to make sure investor proceeds are


    greater than or equal to their preferences.

    NewCo Inc.
    Pro Forma Cap Table
    Start-up Capitalization

    Founders
    Options Granted
    Options Available
    Investor 1
    Investor 2
    Investor 3
    Total

    Common
    1,000,000

    1,000,000

    Total
    1,000,000
    0
    0
    0
    0
    0
    1,000,000

    %
    100.0%
    0.0%
    0.0%
    0.0%
    0.0%
    0.0%
    100.0%

    New Option Pool


    Pre-Money
    Total
    1,000,000
    0
    250,000
    250,000
    0
    0
    0
    250,000
    1,250,000

    New Options

    True Pre-Money: $

    Pre-Money Valuation
    Price / Share
    Total $ Invested
    Post-Money Valuation
    Date

    %
    80.0%
    0.0%
    20.0%
    0.0%
    0.0%
    0.0%
    100.0%
    2,400,000

    Series A
    Investment

    $
    $
    $
    $

    1,000,000
    1,000,000

    $
    $
    $
    $

    3,000,000
    2.40
    1,000,000
    4,000,000
    6/30/2009

    Series A Funding
    Series A
    Post-Money
    Preferred
    Total
    1,000,000
    250,000
    416,667
    416,667
    416,667
    1,666,667

    %
    60.0%
    0.0%
    15.0%
    25.0%
    0.0%
    0.0%
    100.0%

    New Option Pool


    Pre-Money
    Total
    1,000,000
    0
    161,000
    411,000
    416,667
    0
    0
    161,000
    1,827,667

    New Options

    %
    54.7%
    0.0%
    22.5%
    22.8%
    0.0%
    0.0%
    100.0%

    True Pre-Money: $

    9,119,095

    Exit Waterfall
    High Scenario
    $100,000,000
    $
    36.48
    6/30/2011

    Exit Value
    Value Per Share (as-converted basis)
    Exit Date
    Liquidation Preferences
    Series B Full Participation
    Series B Dividend

    Date
    6/30/2010

    Total Series B Preference


    Convert to Common?
    Series A 1x Straight Preferred
    Series A Dividend
    Total Series A Preference
    Convert to Common?

    6/30/2009

    Dividend
    $
    0% $

    Per Share
    5.47
    -

    5.47
    FALSE

    $
    0% $

    2.40
    -

    Shares
    913,833 $
    913,833 $

    5,000,000
    -

    5,000,000

    $
    $

    1,000,000
    -

    1,000,000

    416,667
    416,667

    2.40

    Low Scenario
    $ 12,000,000
    $
    4.38
    6/30/2011
    Date
    6/30/2010

    5,000,000

    6/30/2009
    $

    Dividend
    $
    0% $

    Per Share
    5.47
    -

    5.47
    FALSE

    $
    0% $

    2.40
    -

    TRUE

    Shares
    913,833 $
    913,833 $

    5,000,000
    -

    5,000,000

    $
    $

    1,000,000
    -

    1,000,000

    416,667
    416,667

    2.40

    5,000,000

    TRUE

    Total Preferences

    5,000,000

    5,000,000

    Remaining Common Proceeds

    $ 95,000,000

    7,000,000

    Shares % of Proceeds
    913,833
    33.3%
    416,667
    15.2%
    1,000,000
    36.5%
    411,000
    15.0%
    2,741,500
    100.0%

    $
    $
    $
    $
    $

    2,333,333
    1,063,894
    2,553,347
    1,049,425
    7,000,000

    Per Share % of Proceeds


    8.02
    61.1%
    2.55
    8.9%
    2.55
    21.3%
    2.55
    8.7%

    $
    $
    $
    $

    7,333,333
    1,063,894
    2,553,347
    1,049,425

    Common Proceeds
    Series B
    Series A
    Common
    Options
    Total
    Total Proceeds
    Series B
    Series A
    Common
    Options
    Total
    Series B
    Effective Pre-Money Valuation
    Effective Post-Money Valuation
    Multiple of Cost
    Series B
    Series A

    Check if Proceeds are above Preference:


    Series B
    Series A

    $
    $
    $
    $

    Shares
    913,833
    416,667
    1,000,000
    411,000
    2,741,500

    % of Proceeds
    33.3%
    15.2%
    36.5%
    15.0%
    100.0%

    $
    $
    $
    $
    $

    31,666,667
    14,438,568
    34,652,562
    14,242,203
    95,000,000

    Per Share
    40.12
    34.65
    34.65
    34.65

    % of Proceeds
    36.7%
    14.4%
    34.7%
    14.2%

    $
    $
    $
    $

    36,666,667
    14,438,568
    34,652,562
    14,242,203

    100.0% $100,000,000

    Investor receives preference and participates in


    Common, effectively "double dipping".

    Percentage of proceeds is an important way


    investors look at ownership.

    In a big exit, participation doesnt matter as much.


    The smaller the exit, the more effect participation
    has.

    $
    $
    $
    $

    100.0% $ 12,000,000

    $ 8,636,364
    $ 13,636,364

    7.3x
    14.4x

    1.5x
    1.1x

    OK
    OK

    OK
    OK

    Series B
    Investment

    $
    $
    $
    $

    1,000,000
    4,000,000
    5,000,000

    $ 10,000,000
    $
    5.47
    $ 5,000,000
    $ 15,000,000
    6/30/2010

    Series B Funding
    Series B
    Post-Money
    Preferred
    Total
    1,000,000
    411,000
    182,767
    599,433
    731,067
    731,067
    913,833 2,741,500

    %
    36.5%
    0.0%
    15.0%
    21.9%
    26.7%
    0.0%
    100.0%

    % Preferred
    0.0%
    0.0%
    0.0%
    45.1%
    54.9%
    0.0%
    100.0%

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