When fundraising, issuing shares, or planning to launch an ESOP, all of those events will affect your company’s cap table. Using Excel to make predictions and simulations can be a daunting task. However, there is a way to make scenario modelling much easier.
Here is how to create a simulation on Capboard:
- Before creating a simulation, it’s crucial to bring your cap table up to date. Adding all transactions that have already happened up to this point is necessary to make sure the simulation is based on the current data. This involves adding all the equity issuances, valuations, investments (equity, SAFEs, convertibles), and equity plans.
- Once the cap table is up to date, go to Ownership - Simulations.
- Click on the “+ Create Simulation” button at the top right corner.
- There, you will be asked to add the transaction you are trying to simulate. Don’t worry if you have multiple transactions that you want to simulate. Start with one first.
- Once you add the details of this transaction, click “Generate Cap Table”. A newly updated cap table will be generated, taking into account the transaction. Before leaving, make sure to click on the “Save Simulation” button.
- If you want to add more transactions under this particular simulation, click on the “Transactions” sub-section of the Simulations section on the left-side menu.
- From there, you can add more transactions that will form part of this particular scenario you are simulating.
- To see the impact of those simulated transactions, go back to the Cap Table sub-section under the Simulations section on the left-side menu and click on the “Ownership Evolution” button to observe the dilution of equity ownership for all shareholders.
- Congratulations! You’ve successfully created a simulation.
- You can share the created simulation with others using the “Share” button. Select whether you want to send an invitation to access the simulation’s cap table by email or whether you want to download the pdf or Excel document that you will be able to share in your preferred way.
- You can create more than one simulation by clicking on the “Simulations” section on the left-side menu. Repeating the steps from 3–8 will allow you to create another simulation (there is also a possibility of duplicating the existing one and simply adjusting the numbers by going to the Simulations section, clicking on the three dots next to the simulation you want to duplicate, and clicking on the “Duplicate” button). Once done, you will be able to compare the scenarios using the cap table version selector in the Simulations - Cap Table sub-section.
- You can apply the simulation (all the transactions related to this simulation will be officially recorded) by going to the Simulations section, clicking on the three dots next to the simulation you want to apply, and clicking on the “Apply” button there.