| 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:
-
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
-
Calculate price per share:
- Pre-Money FD shares (including new pool) = existing shares + new pool shares
- PPS = Pre-Money Valuation / Pre-Money FD shares
-
Convert SAFEs:
- Conversion price = lower of: (PPS × (1 − discount)) OR (Cap / Pre-SAFE FD shares)
- SAFE shares = Investment / Conversion Price
-
Issue new investor shares:
- New shares = Investment / PPS
-
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:
- Debt repayment (if any)
- Preferred liquidation preferences (1x non-participating is most common)
- Common stock (pro-rata with preferred if participating, or preferred converts)
- 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:
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."
