Understanding your company's equity distribution, dilution, and the potential impact of various scenarios is critical for startup founders. Cake's Modeling Tool offers a solution to analyze and forecast these critical factors. In this comprehensive guide, we will delve into how to utilize Cake's Modeling tool, along with its latest updates that make the process even more intuitive and flexible.
Importance of cap table modeling for startup founders
Cap table modeling empowers founders and investors with insights into the ownership structure of a company. By predicting the effects of different scenarios such as SAFE note and Convertible note conversions,, you can forecast dilution, evaluate potential strategies, and plan strategically for your fundraise strategy and long term success.
Exciting updates to Cake's modeling features 🎉🎈
Cake has introduced three major updates to enhance the modeling process:
- Multi-Round Calculations: Now you can model multiple rounds, offering an extended forecast and insights into changes over time.
- Conversion Methodologies: Flexibility in toggling between different conversion methodologies for safe notes, enabling more precise control over your equity analysis.
- Saving Scenarios: This crucial update allows you to save scenarios, revert back to them, edit, and delete. Soon, you'll be able to download scenarios to CSV or Excel files.
Accessing Cake's modeling tool
Log into your Cake account.
Navigate to the Equity tab and click on "Modeling."
Inputting details for your upcoming round
- Review the existing data in Cake to ensure it reflects your current cap table.
- Enter the details for your upcoming round, including SAFE/Convertible notes conversion, Pre-money or Post-money valuation, new investment amount, and option pool adjustments.
Analyzing stakeholder and cap table effects
- View the impact on stakeholders, such as founders, employees, and investors.
- Gain insights into the overall effect on the Cap Table.
- Understand dilution and potential outcomes based on the modeled round details.
Modeling different scenarios and future features
- Simulate different scenarios and multiple rounds and evaluate their effects.
- The Modeling tool now supports multi-round calculations, offering more in-depth analysis.
- Save your scenarios simply to return, edit and adjust later.
- The ability to download and extra features will be added shortly
How to model cap table scenarios in Cake
Empower your cap table analysis with Cake
By leveraging Cake's Modeling tool and its latest enhancements, startup founders can master their equity story. The tool's capabilities to analyze multi-round scenarios, flexible conversion methodologies, and the ability to save and manage different models set a new standard in cap table analysis.
Have questions or need assistance? Reach out to Cake's support team on the online chat 💬 or at product at cakeequity.com for guidance!
Get started today
This article is designed and intended to provide general information in summary form on general topics. The material may not apply to all jurisdictions. The contents do not constitute legal, financial or tax advice. The contents is not intended to be a substitute for such advice and should not be relied upon as such. If you would like to chat with a lawyer, please get in touch and we can introduce you to one of our very friendly legal partners.
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