Description
WHAT’S YOUR COMPANY WORTH TODAY?
If you are taking on a partner, raising private equity, or just selling a small percentage of your company to finance growth, you’ll be expected to know the answer to this question. But trust me, tougher questions follow this one. Fortunately, all of these questions can be answered by a good Capitalization Table Calculator. Including:
- Who has already invested, and how much?
- What was the “pre-money” valuation prior to the last investment?
- What was the “post-money” valuation after the last investment?
- What is the current “pre-” and “post-” valuation today?
- How many shares will my money buy me, and what percentage of ownership is that?
- If I take preferred shares, what percentage control of the voting stock will I have?
- How will current investors be “diluted” if I invest today?
- Do you have non-vested shares set aside for employees? What percentage?
- How will I be diluted if we take on future rounds?
- What percent of the company will the founder own when all is said and done?
See How Easy It Is
Watch the instructional video and you will get not only a view of the product, but trained before you buy it….
Any investor will expect you to know these answers.
These are the kinds of key questions that only a capitalization table calculator can answer.
Think through a very simple scenario, and you’ll see how complex these questions really are. Try this:
- Jim started the company and still owns 20 shares
- David owns 10 shares, for which he paid $25 each in 2010
- Tracey owns 10 shares, for which she paid $5 each in 2013
What if Allan now wants to buy 20% of your company? How many shares should you give him? How much should he invest? If he pays $10 per share, what’s the company worth? And how much of the company does Jim (the founder) still own?
My Capitalization Table Calculator makes this simple
Look. You have a business. You have investors. Your financial future, your job, and your company are all on the line. You need a cap table. No real investor is going to give you real money without one, and no business owner should ever take anyone’s money without understanding how it impacts their own ownership and everyone else’s too.
So get the answers to all of those pesky investor questions, with this one spreadsheet. It is completely unlocked and easy to modify. The instructions are clear, and you can email me at any time with questions.
RHI (verified owner) –
In 2008, I used this calculator and advice from David Worrll to take on $1.2 million in investment funding. Thanks RSF, you really helped me!