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I would like you to prepare a cap (capitalisation) table (I’d assume in Excel, but if you prefer something else, no problem with me) for a fundraising round of an imaginary company, Eastern Promises Inc. This company was founded by 2 co-founders, Joe and Bob, each having a 50% equity stake, and they also agreed on creating an option pool (ESOP) for their employees amounting to 10% of the company. The current shareholding thus is Joe 45%, Bob 45% and ESOP 10% (altogether represented by 1,000,000 shares). Joe and Bob agreed with a new investor, The Rocketship Fund, on a $5 million investment round (out of which $4M shall be provided by Rocketship and the remaining $1M shall be split 50/50 by the two existing investors (SAFE holders, see below)) at a $30M pre-money valuation. The company also has 2 outstanding SAFEs (attached), which are going to convert into equity as part of the above-mentioned equity round. The Rocketship Fund also insists on the ESOP’s expansion so that it again represents ~10% equity of the company post the equity round’s completion – this ESOP expansion will take place after the equity round (and will thus dilute everyone). Please send me a cap table showing your thought process & the resulting equity stakes (shares & percentage) of everyone.
I need the table to look as simply as possible and I also need to see notes with thought process! Everything you do/calculate I need to see it clearly explained.