#Cap siteviz examples update
#Cap siteviz examples download

Liquidity events are usually uncertain, and the shareholders cannot foresee how and when they will occur. Waterfall analysis indicates the amount every shareholder on the cap table would receive based on the amount available to equity in a liquidity scenario. US laws allow cap tables to be used as a formal legal record of equity ownership, and must, therefore, be continually updated to reflect any changes in the stock ownership. Also, US companies use their cap tables as the only system of recording stock ownership.

#Cap siteviz examples update

Also, the exit of key shareholders, transfer of shares to another existing shareholder or new shareholder, and termination and retirement of employees require the company to update the cap table.Īn updated cap table helps entrepreneurs and venture capitalists to make informed decisions based on the current information. For example, issuing new shares of an existing security, increasing or decreasing stock options for employees, and issuing new shares of a security requires the cap table to be updated to reflect the changes. With each additional round of funding, the cap table requires updating.

#Cap siteviz examples download

$100,000 for investor 1, $250,000 for investor 2, etc.).Įnter your name and email in the form below and download the free template now! In the ownership section, enter the dollar value each investor is contributing to the funding round (i.e. $1 million) and the current number of shares outstanding (i.e. In the valuation section, enter the current company value (i.e. All numbers in blue are hard-coded assumptions and all numbers in black are formulas. The spreadsheet below contains two sections – valuation and ownership. Cap Table Exampleīelow is a cap table example from one of CFI’s many free excel templates. 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.

Options remaining: Number of remaining shares available to be optioned.Fully diluted shares: Total number of outstanding shares (helps shareholders determine the value of their shares).Stock options: Stock options owned by each shareholder.Shares owned by each shareholder: The number of shares held by each shareholder.Names of shareholders: The names of shareholders who have bought shares in the company.Shares reserved for stock option plan: Unissued shares reserved for future hires.Ī separate table in the capitalization table should include the following:.Unissued Shares: Number of shares that have not been issued.Outstanding shares: Number of shares held by all shareholders in the company.Authorized shares: Number of shares the company is allowed to issue.The subsequent rows should list the following: The first row should indicate the total number of shares of the company. The most common structure is to list the name of investors/security owners on the Y-axis, while the type of securities is listed on the X-axis.Īlternatively, a company can use a spreadsheet template that allows for the addition of information and figures related to their business. The cap table should be designed in a simple and organized layout that clearly shows who owns certain shares and the number of outstanding shares. Most companies use spreadsheets to create a cap table at the inception of the business. Cab tables are used by venture capitalists, entrepreneurs, and investment analysts to analyze important events such as ownership dilution, employee stock options, and the issue of new securities. The simplest form of cap tables lists the shareholders at the beginning and their respective share ownership. The executives must manage all these transactions and documents accurately to show the events since the company’s inception. After a few rounds of financing, the cap tables become complex and list the potential sources of funding, initial public offerings, mergers and acquisitions, and other transactions.Īpart from recording transactions, a cap table also comprises many legal documents such as stock issuances, transfers, cancellations, conversion of debt to equity, and other documents.

Cap tables are created first, before other company documents, in the early stages of a startup or venture. It indicates each investor’s percentage of ownership in the company, the value of their securities, and dilution over time. A cap table (also called capitalization table) is a spreadsheet for a startup company or early-stage venture that lists all the company’s securities such as common shares, preferred shares, warrants, who owns them, and the prices paid by the investors for these securities.