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At Time Company Is Formed: Capitalization Table

This document contains capitalization tables showing the investment, shares, and ownership percentages for a company at the time it is initially formed and after a Series A financing round. When initially formed, the company had $90,000 in investment for 9 million common shares (90% ownership) and 1 million shares in an option pool (10% ownership). After a $5 million Series A round, the company had a post-money valuation of $15 million. This created new shares for investors and an option pool, adjusting the ownership percentages among the common stock, investors, and option pool.

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Arushi Bhandari
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237 views

At Time Company Is Formed: Capitalization Table

This document contains capitalization tables showing the investment, shares, and ownership percentages for a company at the time it is initially formed and after a Series A financing round. When initially formed, the company had $90,000 in investment for 9 million common shares (90% ownership) and 1 million shares in an option pool (10% ownership). After a $5 million Series A round, the company had a post-money valuation of $15 million. This created new shares for investors and an option pool, adjusting the ownership percentages among the common stock, investors, and option pool.

Uploaded by

Arushi Bhandari
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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CAPITALIZATION TABLE AT TIME COMPANY IS FORMED

Investment by VC Pre-money Post- money

$ $ $

New Option Pool

409A Price/Share $ 0.01

Investment Investor 1 Investor 2 TOTAL INVESTMENT $ $ $ $

Shares

Ownership

0%

Common Stock and Pre-Money Options* Common Stock Option Pool $ 90,000 $ 90,000 9,000,000 1,000,000 10,000,000 90% 10% 100%

Post- Money Employee Pool

0%

TOTAL

90,000

10,000,000

100%

* relates to the investment made by founders at the time the company is formed/incorporated

CAPITALIZATION TABLE SERIES A CAP TABLE

Investment by VC Pre-money Post- money

$ $ $

5,000,000 10,000,000 15,000,000

New Option Pool Series A Price/Share**

20% $0.78

Investment Investor 1 Investor 2 TOTAL INVESTMENT $ $ $ 2,500,000 2,500,000 5,000,000

Shares

Ownership 16.67% 16.67%

6,428,571

33.33%

Common Stock and Pre-Money Options* Common Stock $ 90,000 9,000,000 46.67%

90,000

9,000,000

46.67%

New Option Pool

3,857,143

20.00%

TOTAL

5,090,000

19,285,714

100.00%

Note: Please note after a couple of rounds of financings the cap table becomes more complex. ** Series A Price/Share = VC Investment/ New Shares Issued

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