The Capitalization Table: The Lifeblood (and Deathbed?) of Startups

Learn more: breakingintowallstreet.com/ve...
In this tutorial, you'll learn all about capitalization tables ("cap tables") for startups and venture capital-backed companies, and you'll get simple examples of the most important calculations.
Files & Resources:
breakingintowallstreet.com/kb...
Table of Contents:
0:00 Introduction
1:07 Part 1: Cap Tables: The Short Version
2:30 Part 2: Ownership and Investment Sizes
3:47 Part 3: Options and Liquidation Preferences
6:09 Part 4: New Shares and Options in the Round
9:17 Part 5: Share Price in Each Round
10:27 Part 6: Exit Calculations
13:27 Recap and Summary

[@financialmodeling]

Files & Resources:
breakingintowallstreet.com/kb/venture-capital/capitalization-table/
Table of Contents:
0:00 Introduction
1:07 Part 1: Cap Tables: The Short Version
2:30 Part 2: Ownership and Investment Sizes
3:47 Part 3: Options and Liquidation Preferences
6:09 Part 4: New Shares and Options in the Round
9:17 Part 5: Share Price in Each Round
10:27 Part 6: Exit Calculations
13:27 Recap and Summary

[@palilingallensius3303]

i hope this channel still exist until perpetuity period. All the best for you and Mergers & Inquisitions team.

[@financialmodeling]

Thanks!

[@jblack6572]

This is a great example. I've seen many companies that have a "participating preferred" structure, where (I think) they get both the pref and the pro rata value after the pref is subtracted. How would this change the analysis?

[@financialmodeling]

Thanks. Yes, participating preferred essentially lets VCs get both their liquidation preference and a percentage of the common equity remaining after that deduction (sometimes subject to caps). We covered this concept in a tutorial from a few years ago if you do a search in this channel, but plan to feature it separately in an upcoming shorter example.

[@yashmahajan913]

Can you please make a Case Study on this?

[@financialmodeling]

Thanks for your suggestion. The full VC course has several cap table / startup case studies. In this channel, we tend to create free/shorter/simplified versions based on these case studies and may sometimes post summary versions of the full exercises.

[@tituskiprono743]

Hey 👋🏾..I have learned above 20 videos in this channel but I find it difficult learning from a direction where I find myself beginning with topics that requires other topic knowledge eg ..I read on financial leases,unlevered free cash flow before ebit,EBITDA ..It somehow slows the progress,My suggestion is if you an outline that help someone to know what to start with as you proceed towards complex...Am totally new to accountings and I would appreciate for your reply

[@financialmodeling]

Thanks for your suggestion, but this channel is intentionally not a structured course. We offer structured course with specific instructions, study plans, and pacing here: breakingintowallstreet.com/breaking-into-wall-street-courses/
This channel consists of "free samples" and "quick tips" on different topics that get you started in the right direction but which are not meant to be complete solutions to various problems/topic.