Congratulations on raising a new round! In this article, we’re going to walk through how to add a new round to your cap table, including setting up all of the terms for the waterfall, and seniority compared to other preferred securities.
- We’re going to start by adding all of the new shares to the cap table. First, go to ‘Cap Table’ > ‘Spreadsheet’ menu in the navigation drawer on the left side:
- On the Spreadsheet, go to the ‘Preferred Issuances’ tab and fill in the details for all of the stockholders in the new round. Make sure that under ‘Security’ you list the name of the new round you just raised.
- Once you’ve add the stock, you now need to specify the terms of the security itself. We’ll do that from the Security Classes > Summary page:
- Hover over the new round you just created, and click ‘Edit’ from the menu to edit the round’s terms.
- Shareworks Startup is going to use this information to calculate things like the liquidation preference on the round, whether the new shares are participating or non-participating preferred, etc.
- As a final step, we need to set the seniority of this round as compared to your other rounds. You can do this by going to ‘Seniority’ under the ‘Security Classes’ menu on the left side. Once there, drag the security to the appropriate position and then click save.
And with that you’re done! Shareworks Startup now has all of the information it needs to accurately show your new round on the cap table.