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 Modelling tool, along with its latest updates that make the process even more intuitive and flexible.
Importance of Cap Table Modelling 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 Modelling Features 🎉🎈
Cake has introduced three major updates to enhance the modelling 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 Modelling Tool 🧮🔧
Log into your Cake account.
Navigate to the Equity tab and click on "Modelling" from the dropdown menu.
Inputting Details for Your Upcoming Round 📝💰
Review the existing data in Cake to ensure it reflects your current cap table.
In the Modelling tool, you will find "Your Base Situation" at the top, which pulls existing data from your Cake account.
Enter the details for your upcoming round, including whether the SAFE/Convertible Notes that you have uploaded into Cake will be converted, the Pre-money Valuation, New Investment amount, and whether you want to top up your option pool.
Adjust the "Top up option pool/s to %" field to maintain your desired percentage for the option pool.
Analysing Stakeholder and Cap Table Effects 📊📈
Scroll down to view the impact on the company's current stakeholders, including founders, employees, and investors.
Gain insights into the overall effect on the company's Cap Table.
Understand the dilution and potential outcomes based on the modelled round details.
Modelling Different Scenarios and Future Features 🔄🔮
Simulate different scenarios and multiple rounds and evaluate their effects.
The Modelling tool now supports multi-round calculations, offering more in-depth analysis.
Choose which round you would like any SAFE / Convertibles Notes to convert at and the conversion methodology (pre or post-money).
Save your scenarios simply to return, edit and adjust later.
The ability to download and extra features will be added shortly
By leveraging Cake's Modelling 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.
If you have any questions or need assistance while using the Modelling tool, feel free to reach out to the Cake support team on the online chat 💬 for guidance!