Cap Table Calculator
Calculate and manage your startup's capitalization table. Track ownership stakes, analyze dilution impact, and plan future funding rounds with our comprehensive calculator.
Company Details
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Cap Table Summary
Share Price
$0.500
Ownership Distribution
40.0%
$2,000,000
40.0%
$2,000,000
10.0%
$500,000
Total Shares
10,000,000
Valuation
$5,000,000
Share Class Distribution
Common Shares
8,000,000
Preferred Shares
1,000,000
Option Pool
1,000,000
Understanding Cap Tables
Key Components
- • Share Classes
- • Ownership Percentages
- • Option Pool
- • Investment Terms
Important Factors
- • Dilution Impact
- • Conversion Rights
- • Vesting Schedules
- • Pro-rata Rights
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How to Manage Your Cap Table
Share Structure
Organize your shares into appropriate classes and track ownership clearly:
- 1. Define share classes (Common, Preferred)
- 2. Track ownership percentages
- 3. Maintain option pool
- 4. Document investment terms
Best Practices
- • Keep accurate, up-to-date records
- • Model future rounds
- • Track vesting schedules
- • Document all changes
Cap Table FAQs
What is a cap table?
A capitalization table (cap table) is a document that shows the ownership structure of a company, including all shareholders, their ownership percentages, and types of shares held.
How does dilution work?
Dilution occurs when new shares are issued, reducing existing shareholders' ownership percentages. This typically happens during funding rounds or when expanding the option pool.
What's a typical option pool size?
Early-stage startups typically set aside 10-20% of equity for an employee option pool. The size often depends on hiring plans and stage of the company.
How do share classes differ?
Common shares typically go to founders and employees, while preferred shares go to investors. Preferred shares often come with special rights like liquidation preferences and anti-dilution protection.
What's a good founder ownership percentage?
Founders typically retain 60-80% ownership after seed funding, diluting to 30-50% by Series B. The exact percentage depends on funding needs, valuation, and negotiation.
How do convertible notes affect the cap table?
Convertible notes don't immediately impact the cap table but convert to equity during a priced round. The conversion terms, including valuation cap and discount, determine the final ownership.
What are pro-rata rights?
Pro-rata rights allow investors to maintain their ownership percentage in future funding rounds by participating in those rounds proportionally to their existing stake.
How do vesting schedules work?
Vesting schedules determine when shares or options are earned. A typical schedule is 4 years with a 1-year cliff, meaning 25% vests after year one, then monthly thereafter.
Managing Your Cap Table: A Strategic Guide
Understanding Cap Table Management
Think of your cap table as your company's DNA sequence. It tells the story of your company's ownership evolution and sets the foundation for future growth. Like DNA, it needs to be precisely maintained and carefully modified as your company evolves.
Cap Table Structure
Key Elements:
- Common Stock: Founders and employees
- Preferred Stock: Investors
- Options Pool: Future employees
- Convertible Securities: Notes, SAFEs
Strategic Framework
1. Ownership Planning
Key Considerations:
- Founder allocations
- Employee pool size
- Investor allocations
- Future round planning
2. Share Structure
- Define share classes
- Set share prices
- Plan vesting schedules
- Document rights and preferences
Case Study: Cap Table Evolution
Company Journey:
- Starting: 100% founder-owned
- Seed Round: 20% to investors
- Option Pool: 15% reserved
- Series A: 25% to new investors
- Final founder ownership: 40%
Cap Table Management Strategy
Initial Setup:
- Define share classes
- Allocate founder shares
- Create option pool
- Document all terms
Ongoing Management:
- Track vesting
- Monitor dilution
- Update for transactions
- Model scenarios
Future Planning:
- Model funding rounds
- Plan option pool increases
- Consider exit scenarios
- Track key metrics
Cap Table Benchmarks
15%
Target Option Pool
25%
Seed Round Dilution
40%
Target Founder Ownership