First, a disclaimer: I am not a lawyer or a financial advisor and am not offering financial or legal advice.
Scenario modeling is a common usecase for the Cap Table and Exit Waterfall Tool, as it is easy to enter in details on rounds and evaluate the impact of future fundraising rounds on ownership and exit outcomes. It's also easy to use an export of a share register from an equity management tool, import it into the tool, and model fundraising scenarios and proceeds to shareholders at a variety of exit valuations.
In the video above, I detail how to:
- Import an existing cap table
- Model out a new fundraising round to see dilution and impact on ownership
- Model out an exit and distribution of proceeds to shareholders at multiple exit valuations, using just the existing cap table as well as adding in a new fundraising round
- Calculate gross exit multiples and returns to shareholder classes and individual investors
The first through third points took about 10 minutes to do, then I spent the rest of the time showing how to do the fourth point; I do not prebuild the returns (multiple, ROI, IRR) analysis into the model at the moment given a wide variety of edge cases that complicate it, but I'm always happy to answer questions and to help.
Download the tool used for this scenario modeling at Cap Table and Exit Waterfall Tool.