Skill: samledger67-dotcom/cap-table-manager (version 1.0.1)

--- name: cap-table-manager version: 1.0.0 description: > Equity cap table management for startups and growth-stage companies. Models SAFEs, convertible notes, priced equity rounds, token allocations, dilution scenarios, and 409A valuation prep. Outputs investor-ready cap tables, waterfall analyses, and scenario models. tags: - finance - equity - startup - cap-table - saas - legal author: PrecisionLedger / Sam Ledger --- # Cap Table Manager Manage equity ownership from Day 1 through exit. Model rounds, dilution, SAFEs, options pools, and token side-tables. Output investor-ready cap tables and scenario analyses. ## When to Use - Modeling pre-seed / seed / Series A+ rounds and dilution impact - Tracking SAFE conversions (MFN, pro-rata, discount, valuation cap) - Building a convertible note conversion schedule - Calculating fully diluted share counts and ownership percentages - Scenario planning: best / base / bear case valuations and payout waterfalls - Preparing 409A valuation support materials - Modeling option pool expansion (pre-money vs post-money shuffle) - Token allocation tables alongside equity (hybrid company structures) - Generating investor-ready cap table exports (CSV, Google Sheets, Excel) ## When NOT to Use - Public company equity management (use Carta, Shareworks, or a transfer agent) - Complex secondary transactions requiring legal execution (refer to securities counsel) - Tax advice on stock option grants, ISOs vs NSOs (refer to CPA with PTIN) - Cap table maintenance in a state with specific securities filing requirements — flag for attorney review - Replacing a cap table tool of record (Carta, Pulley, LTSE) for an active company with >25 stakeholders - Anything requiring custodianship, ledger finality, or board-authorized record keeping --- ## Core Concepts ### Share Classes - **Common Stock** — founders and employees; lowest liquidation preference - **Preferred Stock** — investors; liquidation preference + conversion rights - **Options/Warrants** — unissued; part of fully diluted but not issued shares - **SAFEs** — Simple Agreement for Future Equity; convert at next priced round - **Convertible Notes** — debt converting to equity at a discount or cap ### Key Metrics | Metric | Formula | |--------|---------| | Ownership % | Shares Held / Total Fully Diluted Shares | | Pre-Money Valuation | Post-Money − New Investment | | Price Per Share | Pre-Money Valuation / Pre-Money Fully Diluted Shares | | Dilution % | 1 − (Old Shares / New Fully Diluted Shares) | | Liquidation Preference | Investment Amount × Preference Multiple | --- ## Workflows ### 1. Build a Baseline Cap Table Collect and structure current ownership: ``` Stakeholder | Class | Shares | % Ownership | Notes ------------|-------|--------|-------------|------ Founder A | Common | 4,000,000 | 40% | Vesting 4yr/1yr cliff Founder B | Common | 3,000,000 | 30% | Vesting 4yr/1yr cliff Option Pool | Options | 1,000,000 | 10% | 2024 Plan, unissued Angel 1 | SAFE | — | — | $250K @ $5M cap, 20% discount Angel 2 | SAFE | — | — | $100K MFN SAFE TOTAL (pre-conversion) | | 8,000,000 | 80% issued | ``` **Calculation prompt:** > "Build me a cap table. Founders: Alice 4M shares, Bob 3M shares. Option pool: 1M shares. Pre-money fully diluted: 8M shares. We have a $250K SAFE at $5M cap and 20% discount, and a $100K MFN SAFE. We're raising a $2M seed at $8M pre-money. Show post-close ownership for all parties." --- ### 2. Model a Priced Round **Inputs needed:** - Pre-money valuation - Investment amount - New option pool size (if expanding pre-money) - Existing cap table (issued + options + SAFEs outstanding) **Step-by-step:** 1. **Calculate post-money option pool** (if pre-money shuffle): - New option pool shares = Target % × Post-Money Fully Diluted - Example: 15% post-close pool on 12M post-money FD shares = 1.8M options reserved 2. **Calculate price per share:** - Pre-Money FD shares (including new pool) = existing shares + new pool shares - PPS = Pre-Money Valuation / Pre-Money FD shares 3. **Convert SAFEs:** - Conversion price = lower of: (PPS × (1 − discount)) OR (Cap / Pre-SAFE FD shares) - SAFE shares = Investment / Conversion Price 4. **Issue new investor shares:** - New shares = Investment / PPS 5. **Rebuild fully diluted table post-close** **Example — Seed Round:** ``` Pre-money valuation: $8,000,000 New investment: $2,000,000 Post-money valuation: $10,000,000 Pre-money FD shares (incl. pool shuffle): 9,500,000 Price per share: $8M / 9.5M = $0.8421 SAFE #1 conversion ($250K @ $5M cap, 20% disc): Cap price: $5M / 8M pre-SAFE shares = $0.625 Discount price: $0.8421 × 0.80 = $0.6737 Conversion at: $0.625 (lower) SAFE shares: $250K / $0.625 = 400,000 shares SAFE #2 conversion (MFN → matches best terms = $0.625): SAFE shares: $100K / $0.625 = 160,000 shares New investor shares: $2M / $0.8421 = 2,375,012 shares Post-close fully diluted: 9,500,000 + 400,000 + 160,000 + 2,375,012 = 12,435,012 ``` --- ### 3. Option Pool Modeling **Pre-money pool shuffle (standard VC ask):** > New pool is carved out pre-close, diluting founders not investors. ``` Target post-close option pool: 15% Post-money FD shares (target): X New pool = 0.15 × X Solve: X = existing_shares + new_pool + investor_shares X = existing_shares + 0.15X + (investment / PPS) PPS = pre_money / (existing_shares + 0.15X) ``` Use iteration or algebra to solve. Common shortcut: model in a spreadsheet with goal-seek on ownership %. **Prompt template:** > "I have 8M fully diluted shares pre-round. VC wants 20% post-money ownership for $3M. They also want a 15% option pool post-close, pre-money shuffle. What's the pre-money valuation implied, PPS, and final ownership table?" --- ### 4. Waterfall Analysis (Exit Scenarios) Model liquidation preference payout order at various exit values. **Standard waterfall order:** 1. Debt repayment (if any) 2. Preferred liquidation preferences (1x non-participating is most common) 3. Common stock (pro-rata with preferred if participating, or preferred converts) 4. Option/warrant holders (exercise if in-the-money) **Example — 1x non-participating preferred:** ``` Exit value: $15,000,000 Preferred investment: $2,000,000 (Series Seed, 1x non-participating) Common shares: 10M | Preferred shares: 2.4M | FD: 12.4M Option A (preferred takes preference): Preferred gets: $2,000,000 (1x) Remaining for common: $13,000,000 Common per share: $13M / 10M = $1.30 Option B (preferred converts to common): All shares pro-rata: $15M / 12.4M = $1.21/share Preferred gets: 2.4M × $1.21 = $2,903,226 Preferred chooses: Option A ($2M) vs Option B ($2.9M) → converts to common ``` **Build exit scenarios at: $5M, $10M, $20M, $50M, $100M** — show each stakeholder's payout. --- ### 5. 409A Valuation Prep Gather inputs for a 409A (required before each option grant): **Required inputs:** - Current cap table (fully diluted, all classes) - Most recent priced round (date, PPS, investors) - Any SAFEs or convertible notes outstanding - Company financials: revenue, ARR, burn rate, cash runway - Comparable company multiples (revenue multiple, EBITDA multiple) - Any material events since last 409A (new contracts, pivots, key hires) **Common 409A methods:** | Method | Best For | Common Weight | |--------|----------|---------------| | Market Approach (OPM) | VC-backed, priced rounds | 60–80% | | Income Approach (DCF) | Revenue-generating | 10–30% | | Asset Approach | Pre-revenue / distress | 0–20% | **Output to provide to 409A firm:** - Fully diluted cap table (CSV) - Most recent investor presentation / pitch deck - 3 years of financials (actuals + projections) - List of comparable public companies or recent M&A transactions --- ### 6. Token Allocation Table (Hybrid Structures) For companies with both equity and token components: ``` Token Allocation (Total Supply: 1,000,000,000) ----------------------------------------------- Team & Founders: 20% = 200M tokens | 4yr vest, 1yr cliff Investors: 15% = 150M tokens | 2yr vest, 6mo cliff Ecosystem/DAO: 30% = 300M tokens | 5yr linear release Public Sale: 10% = 100M tokens | Unlocked at TGE Treasury: 15% = 150M tokens | DAO governed Advisors: 5% = 50M tokens | 2yr vest, 6mo cliff Liquidity/Market: 5% = 50M tokens | Unlocked at TGE Equity ↔ Token relationship: - Token grants to equity holders: [document separately] - Anti-dilution protection: [specify if tokens trigger] - Side letter required for investor token rights ``` --- ### 7. CSV/Sheets Export Format Standard investor-ready cap table columns: ```csv Stakeholder,Type,Share Class,Shares Issued,Options,Warrants,SAFE (Unconverted),Fully Diluted Shares,Ownership %,Investment,Note Alice Chen,Founder,Common,4000000,,,,,32.2%,,4yr vest 1yr cliff Bob Smith,Founder,Common,3000000,,,,,24.2%,,4yr vest 1yr cliff Option Pool,Employees,Options,,1500000,,,1500000,12.1%,,2024 Equity Plan Sequoia Capital,Investor,Series Seed Pref,2375012,,,,,19.1%,"$2,000,000",1x non-part SAFE Holder 1,Investor,Common (converted),400000,,,,,3.2%,"$250,000",Converted @ $0.625 SAFE Holder 2,Investor,Common (converted),160000,,,,,1.3%,"$100,000",MFN converted TOTALS,,,9935012,1500000,,,12435012,100%,"$2,350,000", ``` --- ## Common Errors & Watch-Outs | Issue | Symptom | Fix | |-------|---------|-----| | Double-counting SAFEs | FD shares too high | Only count SAFEs post-conversion | | Pre/post money confusion | Wrong PPS | Confirm: pre-money = before investment, post-money = after | | Option pool shuffle missed | Founders less diluted than expected | Confirm pool created pre-close | | Participating preferred math | Payout too high | Check if preferred also gets pro-rata after preference | | Wrong discount application | SAFE converts at wrong price | Discount on PPS, cap on pre-SAFE FD shares | --- ## Quick Reference — Useful Formulas ``` Post-money valuation = Pre-money + New Investment Price Per Share (PPS) = Pre-money / Pre-money FD Shares SAFE conversion shares = SAFE Amount / min(Cap PPS, Discount PPS) Discount PPS = PPS × (1 - Discount Rate) Cap PPS = Valuation Cap / Pre-SAFE FD Shares Option pool shares = Target % × Post-money FD Shares [if post-money basis] Dilution % = New Shares / (Old FD + New Shares) Ownership % = Stakeholder Shares / Total FD Shares ``` --- ## Escalation Triggers Flag to attorney or CPA when: - Preferred stock has complex liquidation preferences (2x, participating, caps) - Anti-dilution provisions (broad-based vs narrow-based weighted average, full ratchet) - Drag-along, tag-along, or ROFR rights affect modeling assumptions - 83(b) election windows, ISO limits ($100K/yr rule), or QSBS eligibility - Token rights embedded in equity instruments (side letters, token warrants) - Company has international founders or investors (foreign private issuer rules) --- ## Example Prompts **Round modeling:** > "We're raising a $5M Series A at a $20M pre-money. Current cap: 8M founder shares, 1.5M option pool, $500K SAFE at $8M cap 20% discount. VC wants 15% post-money option pool, pre-money shuffle. Show me the full post-close cap table." **Dilution check:** > "How much will founders dilute if we raise $3M at $12M pre-money with a 20% post-close option pool?" **Exit waterfall:** > "Model our exit waterfall at $10M, $25M, $50M. We have: 2x participating preferred ($2M invested), then common. Show who gets what at each exit." **SAFE conversion:** > "We have three SAFEs: $200K at $4M cap, $100K at $6M cap 15% discount, $150K MFN. We're pricing a round at $10M pre-money with 9M pre-money FD shares. Calculate conversion prices and resulting shares for each SAFE." **409A prep:** > "Prepare the inputs list for our 409A valuation. Last priced round: $2M seed at $8M pre-money, closed January 2025. Current ARR: $180K. Cash: 18 months runway. Provide the document checklist and financial data template."


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