Cap Tables and Valuation
Cap table mechanics, ownership math, and how private companies are valued.
Articles from the Syndicately blog on this topic.
-
Fractional Ownership of Alternative Assets Through SPVs
Read article: Fractional Ownership of Alternative Assets Through SPVsAn SPV can fractionalize an asset by buying it once and selling proportional membership interests to investors, under Regulation D, Reg CF, or Reg…
-
How Fair Value Works for Private Company Investments
Read article: How Fair Value Works for Private Company InvestmentsA plain guide to fair value for private company investments: the three valuation approaches, why the last financing round anchors the mark, and a…
-
What is a 409A Valuation?
Read article: What is a 409A Valuation?If you’re giving equity to employees or anyone else providing services to your company, the IRS wants you to know what that equity is…
-
Anti-Dilution Provisions: Full Ratchet vs. Weighted Average
Read article: Anti-Dilution Provisions: Full Ratchet vs. Weighted AverageFull ratchet and weighted average anti-dilution compared, with a worked example showing how each affects an SPV’s preferred stock position after a down round.
-
The Definitive Guide to Venture Capital Valuation Methods
Read article: The Definitive Guide to Venture Capital Valuation MethodsVenture capital valuation isn’t just about crunching numbers. It’s a balancing act between relying on numbers and trusting your instincts, between focusing on future…
-
Crafting an Effective Cap Table for Startups: A Guide for Founders
Read article: Crafting an Effective Cap Table for Startups: A Guide for FoundersLaunching a startup is an exhilarating endeavor filled with dreams of substantial returns and market disruption. However, foundational elements like equity management are pivotal…
-
Calculating Post-Money Valuation for Investments
Read article: Calculating Post-Money Valuation for InvestmentsPost-money valuation refers to the value of a company after a funding round is completed. It takes into account the amount of funding that…
-
Phantom Equity for Startups
Read article: Phantom Equity for StartupsMotivating and inspiring employees involves various strategies. One emerging approach gaining popularity is the use of phantom shares, also known as virtual stock options.…
-
How to Make a Cap Table: Examples and Templates
Read article: How to Make a Cap Table: Examples and TemplatesA capitalization table, also known as a cap table, is a document that outlines the actual ownership percentage of a company, showing the breakdown…
-
Comparing Pre-Money SAFE and Post-Money SAFE
Read article: Comparing Pre-Money SAFE and Post-Money SAFEOne of the simpler methods for early-stage startups to secure funding is by utilizing a financial instrument known as a convertible security. A convertible…