Founders Equity Startup by fye36231

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Founders Equity Startup document sample

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									SAMPLE CAP TABLE FORECAST
  (Thousands)

  This spreadsheet is a simple tool I customize to examine the equity dynamics of a potential startup
  Replace the placeholder investment percentages (which set valuation) based on current market conditions and
  your situation. Hard-coded inputs are in blue. Hope it is useful! -- Giff Constable


Founding
  Holder                                Shares            %                        NOTES
  Founder 1                                     300       30.00%                   Zero out % if you have fewer founders
  Founder 2                                     300       30.00%
  Founder 3                                     300       30.00%
  Founder 4                                     100       10.00%
  Total Shares                              1,000.0       100.0%


Interim Expansion (if any)
  Holder                                Shares            %
  Founder 1                                     300       29.27%
  Founder 2                                     300       29.27%
  Founder 3                                     300       29.27%
  Founder 4                                     100         9.76%
  New Teammate                                    0         0.00%
  New Teammate                                    0         0.00%
  Advisor                                        25         2.44%
  Total Shares                              1,025.0       100.0%




Seed Round                                     $50            10.0%                Left input is amount to raise, right inpu
  PreMoney Valuation                          $450
  Post                                        $500

  Holder                                Shares            %
  Seed Investor                                 114         10.0%
  Founder 1                                     300         26.3%
  Founder 2                                     300         26.3%
  Founder 3                                     300         26.3%
  Founder 4                                     100          8.8%
  New Teammate                                    0          0.0%
  New Teammate                                    0          0.0%
  Advisor                                        25          2.2%
  Employee Options Pool Starter                   0          0.0%
  Total Shares                                1,139        100.0%


Angel Round                                   $500            20.0%                Left input is amount to raise, right inpu
  PreMoney Valuation                        $2,000
  Post                                      $2,500
 Holder                          Shares         %
 Angel Investor(s)                     322       20.0%
 Seed Investor                         114        7.1%
 Founder 1                             300       18.6%
 Founder 2                             300       18.6%
 Founder 3                             300       18.6%
 Founder 4                             100        6.2%
 New Teammate                            0        0.0%
 New Teammate                            0        0.0%
 Advisor                                25        1.6%
 Employee Options Pool Starter           0        0.0%
 Employee Option Pool 1                150        9.3%      Total Options Pool:
 Total Shares                        1,611      100.0%


A Round                             $2,500          25.0%      Left input is amount to raise, right inpu
 PreMoney Valuation                 $7,500
 Post                              $10,000

 Holder                          Shares         %
 A Investor                            610       25.0%
 Angel Investor(s)                     322       13.2%         In this scenario, angels do not re-up (s
 Seed Investor                         114        4.7%
 Founder 1                             300       12.3%
 Founder 2                             300       12.3%
 Founder 3                             300       12.3%
 Founder 4                             100        4.1%
 New Teammate                            0        0.0%
 New Teammate                            0        0.0%
 Advisor                                25        1.0%
 Employee Options Pool Starter           0        0.0%
 Employee Option Pool 1                150        6.1%
 Employee Option Pool 2                220        9.0%      Total Options Pool:
 Total Shares                        2,441      100.0%


B Round                             $4,000          20.0%      Left input is amount to raise, right inpu
 PreMoney Valuation                $16,000
 Post                              $20,000

 Holder                          Shares         %
 B Round                                  623       20.0%

 B Investor                               455       14.6%
 A Investor re-up                         168        5.4%      In this scenario, A Investor re-ups to m
 A Investor                               610       19.6%
 Angel Investor(s)                        322       10.3%
 Seed Investor                            114        3.7%
 Founder 1                                300        9.6%
 Founder 2                                300        9.6%
 Founder 3                                300        9.6%
 Founder 4                                100        3.2%
  New Teammate                                     0           0.0%
  New Teammate                                     0           0.0%
  Advisor                                         25           0.8%
  Employee Options Pool Starter                    0           0.0%
  Employee Option Pool 1                         150           4.8%
  Employee Option Pool 2                         220           7.1%
  Employee Option Pool 3                          50           1.6%              Total Options Pool:
  Total Shares                                 3,114         100.0%


Exit
  Exit                                      $50,000
  Value per Share ($)                        $16.05

  Holder                                Ownership         Return        Investment      Multiple
  B Investor                                 14.6%           $7,299           $4,000           1.8x
  A Investor                                 25.0%          $12,500           $2,500           5.0x
  Angel Investor(s)                          10.3%           $5,173             $500          10.3x
  Seed Investor                                3.7%          $1,828              $50          36.6x
  Founder 1                                    9.6%          $4,816
  Founder 2                                    9.6%          $4,816
  Founder 3                                    9.6%          $4,816
  Founder 4                                    3.2%          $1,605
  New Teammate                                 0.0%              $0
  New Teammate                                 0.0%              $0
  Advisor                                      0.8%            $401
  Employee Options Pool                      13.5%           $6,743
  Total                                       100%          $50,000           $7,050



Example Data Table
                                                            Multiple of Return for A Round Investor
                           Total Exit                        A Investor Ownership Stake at Time of A Round
                                5.0x            15%             20%            25%             30%
                            $10,000             0.6x            0.8x           1.0x            1.2x
                            $30,000             1.8x            2.4x           3.0x            3.6x
                            $50,000             3.0x            4.0x           5.0x            6.0x
                            $70,000             4.2x            5.6x           7.0x            8.4x
                            $90,000             5.4x            7.2x           9.0x           10.8x
                           $110,000             6.6x            8.8x          11.0x           13.2x
                           $130,000             7.8x           10.4x          13.0x           15.6x
                           $150,000             9.0x           12.0x          15.0x           18.0x
                           $170,000            10.2x           13.6x          17.0x           20.4x
                           $190,000            11.4x           15.2x          19.0x           22.8x




  Original version equity scenario v1.2 created by Giff Constable, Nov 2009
If you spot a bug, please let me know!
http://giffconstable.com
t market conditions and




ro out % if you have fewer founders; make sure it adds up to 100%




t input is amount to raise, right input is investor ownership




t input is amount to raise, right input is investor ownership
                        9.3%



t input is amount to raise, right input is investor ownership




his scenario, angels do not re-up (see B round for example of modeling a re-up)




                       15.2%



t input is amount to raise, right input is investor ownership




his scenario, A Investor re-ups to maintain ownership stake
                       13.5%




A Round Investor
e at Time of A Round
                        35%     40%
                        1.4x    1.6x
                        4.2x    4.8x
                        7.0x    8.0x
                        9.8x   11.2x
                       12.6x   14.4x
                       15.4x   17.6x
                       18.2x   20.8x
                       21.0x   24.0x
                       23.8x   27.2x
                       26.6x   30.4x
                                                                                                                          CONFIDENTIAL DRAFT

Modeling Out Participation Caps

     Note: This is a simple modeling example looking at the impact of liquidation and participation preferences

     Pre Money                                                $10.0
     Investment                                                $5.0
     Post Money                                               $15.0
     VC Ownership                                              33%
     Liquidation Pref                                          1.0x
     Participation Cap                                         3.0x
     Max Preference                                           $15.0

                                                                       Return to        VC Return w/o   VC Returns w/o
               Exit Value                    Return to VC              Common               cap           Preference      $35.0
                                 $0.0                   $0.0                     $0.0              $0.0            $0.0
                                 $5.0                   $5.0                     $0.0              $5.0            $1.7                                     Return to VC
                                $10.0                   $6.7                     $3.3              $6.7            $3.3   $30.0
                                                                                                                                                            Return to Common
                                $15.0                   $8.3                     $6.7              $8.3            $5.0
                                $20.0                  $10.0                   $10.0             $10.0             $6.7                                     VC Return w/o cap
                                                                                                                          $25.0
                                $25.0                  $11.7                   $13.3             $11.7             $8.3                                     VC Returns w/o Prefe
                                $30.0                  $13.3                   $16.7             $13.3            $10.0
                                $35.0                  $15.0                   $20.0             $15.0            $11.7   $20.0
                                $40.0                  $15.0                   $25.0             $16.7            $13.3
                                $45.0                  $15.0                   $30.0             $18.3            $15.0
                                $50.0                  $16.7                   $33.3             $20.0            $16.7   $15.0


                                                                                                                          $10.0


               Exit Value                      Preference             Participation    Total                               $5.0
                                 $0.0                   $0.0                      $0.0                  $0.0
                                 $5.0                   $5.0                      $0.0                  $5.0
                                $10.0                   $5.0                      $1.7                  $6.7               $0.0
                                $15.0                   $5.0                      $3.3                  $8.3                  $0.0          $5.0       $10.0       $15.0
                                $20.0                   $5.0                      $5.0                 $10.0
                                $25.0                   $5.0                      $6.7                 $11.7
                                $30.0                   $5.0                      $8.3                 $13.3
                                $35.0                   $5.0                    $10.0                  $15.0
                                                                                                                                             BROADVIEW INTERNATIONAL
cb176e64-9d40-498a-a64a-f772c7f01585.xls 4/21/2011 11:02 AM                                    Page 10 of 13                      A DIVISION OF JEFFERIES COMPANY, INC.
                                                                                             CONFIDENTIAL DRAFT

                                $40.0                         $5.0   $11.7           $16.7
                                $45.0                         $5.0   $13.3           $18.3
                                $50.0                         $5.0   $15.0           $20.0




                                                                                                           BROADVIEW INTERNATIONAL
cb176e64-9d40-498a-a64a-f772c7f01585.xls 4/21/2011 11:02 AM                  Page 11 of 13      A DIVISION OF JEFFERIES COMPANY, INC.
                                                                                                         CONFIDENTIAL DRAFT




                                                              Return to VC
                                                              Return to Common
                                                              VC Return w/o cap
                                                              VC Returns w/o Preference




                                                                   $15.0     $20.0       $25.0   $30.0
                                                                                 Total Exit Value



                                                                                                                       BROADVIEW INTERNATIONAL
cb176e64-9d40-498a-a64a-f772c7f01585.xls 4/21/2011 11:02 AM                   Page 12 of 13                 A DIVISION OF JEFFERIES COMPANY, INC.
                                                                              CONFIDENTIAL DRAFT




                                                                                            BROADVIEW INTERNATIONAL
cb176e64-9d40-498a-a64a-f772c7f01585.xls 4/21/2011 11:02 AM   Page 13 of 13      A DIVISION OF JEFFERIES COMPANY, INC.

								
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