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Startup Cap Table Template - How To Create Your Own A Startup Cap Table template is an important tool for businesses that are just starting out or planning to grow rapidly. The Startup Cap Table was developed by Chris Freville, a certified public accountant, to help new businesses accurately calculate their ownership and other expense levels. The template comes in Excel. startups is also available in other formats such as Comma Separated Values (CSV) and XML.    A Startup Cap Table template is used to calculate the total number of shares outstanding, which will be the total number of shares that a company owns as of the date of this writing. The startup cap table shows who owns what, by year, and how much each entity/person owns. All of these details are important to a company's capital structure plans. This information is important to avoid situations where too many or few outstanding shares exist leading to a company's inability to finance its growth.    Investors may not know a company's exact situation. In those situations, it is possible for investors to make assumptions or estimates. If those assumptions prove to be inaccurate, the funding situation for the startup company can become worse than originally imagined. By using an accurate startup cap table template, new business owners can avoid these problems and provide accurate, fair and complete funding projections.    A startup cap table template can also be used for planning future acquisitions. When a company acquires another, it does so with shares of ownership in each entity as of that time. Each share represents a fraction of a percentage point of ownership. This allows investors to use charts and tables that show the growth of each stake as the company grows. Investors can also see at a glance how all of the acquisitions affect each other and how each will impact future profits and losses.    Another way to use the Excel Sheet template to build a valuation model is to evaluate stock options. Stock options are derivative instruments whose values are based on the current market price of the security or underlying stock. If the value of an option rises, then the value of the underlying stock is lower. Using an excel sheet to develop a financial model that projects the purchase of stock options and their values provides a dynamic data set that can be used by traders and investors to make more informed decisions about where and when to buy and sell stock options.    Startup capital is only part of the financing required to launch a new business. Many angel investors and venture capital firms provide seed money as well as loans to help new businesses get started. Seed money is provided based on the anticipated success of the business, so it is important to carefully consider the pros and cons of each type of financing before committing to any one source of funding. One way to avoid choosing the wrong venture capital source is to create a series of startup cap tables using the appropriate data from each source so that the choice can be made based on the most likely return on investment.    Investors can also decide between obtaining start up capital in one lump sum or through many small payments. For example, instead of raising a single check for tens of thousands of dollars with a high interest rate, start up investors may decide to issue 50 million shares of stock at a discounted rate over a period of months. This would require investors to buy more shares at a lower rate than they could buy them now, reducing the risk of immediate outflow of cash. A spreadsheet that creates a simple cap table for such scenarios can be easily customized to include the quantity of stock to be sold, the initial purchase price, the rate of return, and the effect on the value of shareholder equity. This makes it easy for any potential shareholder to determine if he is comfortable paying upfront cash to acquire this large amount of stock.    In conclusion, creating a simple cap table for determining equity financing options for companies can help investors make an informed decision. Investors need to understand that there are many potential outcomes when it comes to investing in start up companies. A portfolio approach can help determine the most likely outcome and then a series of other approaches can be followed based on that assumption. However, it is important to remember that returns cannot be determined without looking at the current and historical operating results of the company as well as the prospective return on investment. All investments should be evaluated based on the current and long-term tangible and non-tangible assets owned by the enterprise.

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