Use this as a startup capitalization table (startup cap table) template for your next round of investment. It includes a quick guide on cap tables and useful tips.
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Raising capital is an important step for startups as it allows them to scale their business and bring their product or service to market. One key aspect of fundraising is the effect it has on a startup’s capitalization table, also known as a startup cap table.
If you’re creating a startup cap table for the first time, beginning from scratch can feel overwhelming and get complicated – even for an early stage company.
This template simplifies cap table creation, automatically updating references to reflect your current ownership position accurately. It also includes a detailed guide on how cap tables work and some useful tips from Decipad's founders!
A capitalization table (or cap table) is a record of the equity ownership in a company and is used to track the distribution of shares and equity dilution during funding rounds.
Cap tables are used by founders, investors, and other stakeholders to visualize the effects of new investments on ownership stakes.
Use this startup cap table template to get to grips with the foundations of cap tables, or use it as a starting point to create your own cap table based on your inputs. The document will automatically update all references and accurately reflect your position.
Cap tables consist of several key components that help founders and investors visualize, plan, and structure equity distribution.
Start by entering your initial ownership data, including shares distributed to founders and any Employee Stock Ownership Plan (ESOP).
An ESOP is a benefit plan that gives employees ownership in the company, promoting alignment with the startup’s long-term goals.
A critical component of cap tables is understanding pre-money and post-money valuations.
Enter the investment amount and the percentage of ownership that this investment will provide to the new investor, and Decipad will automatically calculate your pre-money valuation and post-money valuation in this template.
In a fundraising round, startups typically raise capital from a mix of institutional investors and angel investors. Institutional investors are typically large investment firms or venture capital firms, while angel investors are high net worth individuals who invest their own money in startups.
A common difference between institutional investors and angel investors is that institutional investors typically receive preference shares, while angel investors do not.
This section covers the price per share (PPS), calculated by dividing the total company value by the number of outstanding shares. Preference shares often come with rights not available to common stockholders, like dividend preference and liquidation priority.
It's important to note that preference shares are not a “must have” in every round, and it will depend on the company and the investors' preferences and negotiation. Also, preference shares can have different rights and privileges depending on the company - it's important to consult with a lawyer or an experienced advisor.
The allocation table allows users to customize the equity structure for each funding round. You can input the equity allocated to institutional and angel investors, and the template automatically updates to reflect the new ownership structure. This feature helps founders visualize the impact of each round on overall ownership and prepare for investor discussions.
This Decipad cap table template includes a guide to help founders understand each element of a cap table.
Duplicate it and start entering your company’s data to see how shares, valuations, and ownership structure evolve as you raise capital.
You can try it out for free here!
