Pre-money valuation refers to the value of a company before it goes public or receives external funding or financing. It includes the value of all assets, but excludes the capital that will be added in the upcoming investment round. Post-money valuation, on the other hand, refers to a company's estimated worth after outside financing and capital injections are added to its balance sheet. It includes the pre-money valuation plus the value of new equity from the investment.

stars icon
24 questions and answers
info icon

Some best practices for maintaining an updated cap table include: keeping it simple and organized, regularly updating it after every financial event such as funding rounds or stock option grants, ensuring accuracy by double-checking calculations and entries, using cap table management software for efficiency, and seeking legal advice to ensure compliance with laws and regulations.

A cap table, or capitalization table, is a spreadsheet or table that shows the equity capitalization for a company. It provides a detailed record of all the company's securities and who owns them, including equity shares, preferred shares, options, warrants, etc. It helps in understanding the equity distribution in a company by showing the percentage of ownership, equity dilution, and value of equity in each round of investment by founders, investors, and other owners.

Some tools to create and manage a cap table include, Carta, and Gust Equity Management. These tools provide features for cap table management, scenario modeling, and equity plan administration.

View all 24 questions
stars icon Ask another question
This question was asked on the following resource:

Cap Table

Ever wondered why some companies stay under the control of their founders, while others shift into t...

Download model
resource preview

Download and customize more than 500 business templates

Start here ⬇️

Voila! You can now download this Spreadsheet