Shareworks Startup has a useful tool for modeling out potential financing rounds to gauge the impact a round would have on your cap table. This ‘Financing Rounds’ tool can be found in the dashboard under ‘Scenarios’.
Step 1: Enter a name for the round and select the cap table you wish you use.
Step 2: Set the size of the pre-money option pool. You can either enter in a share increase or set a percentage for the option pool, and Shareworks Startup will calculate the new option pool. If the option pool is not changing, you can ignore this section.
Step 3: Set the pre-money valuation and the amount of new money. You will also see a field for convertible securities. Set this field to the amount of convertible debt that will convert into equity as part of the round. This field will default to the total outstanding convertible debt.
Step 4: Set amounts for each convertible security converting in the round. In the majority of cases your convertible debt is required to convert into equity, so you likely won’t need to do anything here – each security defaults to the total outstanding amount. Otherwise, you can change the amount, cap, or discount for any of the convertible securities and Shareworks Startup will adjust the price per share and number of shares automatically.
Step 5: Set investment amounts for each investor participating in the round.
At the bottom of the page, the financing round tool displays pre-money and post-money fully-diluted percentages that would occur as a result of the round.
Step 6: Modeling the New Round in a copy of your cap table
Now that you have completely modeled your financing round, you can see how many new shares will be created and who will be receiving those shares. In order to view this as an actual cap table and do things such as running a waterfall, you must create a copy of the cap table we used. For more direction in modeling the round in a cap table copy, see here: How to model financing round data into a new cap table version.