A Startup Cap Table template is a worksheet, usually utilized by early stage businesses or start-ups, which clearly outlines the ownership structure of the business. The startup cap table represents who owns what, exactly how much each entity/party owns and what their value is in terms of shares. It also shows what percentage of ownership is given to each shareholder. This is typically a one-page spread sheet that lists the company’s name, the date of its incorporation, the names and amounts of each of its partners and other related information. It is an extremely valuable tool for investors and business owners because it presents the true picture of where a business stands at the present moment.

Most start up cap tables are designed with one to two pages depending on the size of the Excel sheet used to create it. The larger the spreadsheet, the more detailed and complex the model needs to be in order to represent all the main parts of a business’s ownership structure, as well as all of the main types of investments that have been made. Because of this, it is important to choose the appropriate size of the startup cap table template that best suits your purposes.

One type of startup cap table is quite simple. It simply shows the total number of shares owned by each partner, with the corresponding percentage as their individual stake. These models are great for tracking and comparing historical performance between different partners. They also make it very easy to track and compare shares by specific amounts, such as a percentage of a particular investment.

More complex models for startup cap tables are ones that represent both total number of shares and percentage of ownership. These are often represented as worksheets on Excel spreadsheets and may contain multiple tabs, with each representing an asset during the initial stages of company development. It is important to separate these assets by categories to clearly see what each category represents and how those assets were originally obtained.

For many startup entrepreneurs, however, the need to represent the assets in a simple way is simply not enough. At the most basic level, there are two possible scenarios that could represent the startup capital available at the time the entrepreneur is filing his or her first annual return – either 100% capital or financing from angel investors. In addition to representing the potential amount of money needed to launch the business, these types of templates can also help provide information about the financing sought and whether any private investors were used to fund the business. It is also possible to select the number of investment rounds and years for which capital is raised, allowing investors to easily gauge the potential for appreciation in value for their investment.

Many startup cap tables also represent the ownership structure of the business, showing two types of capital, one represented by unissued shares and the other by convertible or fixed-rate debt. Depending on the type of business and the stage of development that has been completed, the value of these unissued shares can vary significantly, depending on the overall financial results of the business. A common problem among startups is that early investors often sell their fixed or convertible-rate debt shares for less than the fair market value in order to free up capital for further investment in the business.

Startup cap tables can also be created for companies that have only one founding investor or very limited equity ownership and do not necessarily represent an attempt to present an accurate valuation of the company’s potential. As is true with startup companies, initial investors usually do not offer equity capital as part of a loan. Thus, it is sometimes necessary to create cap tables using excel sheet based tools, particularly when the numbers represent several different companies, instead of a single company representing several discrete transactions.

The startup cap table template can also represent one of several alternative methods of financing, as well as provide a mechanism for determining if the venture needs a loan or if it can operate without any outside financing. The startup cost per trade can be calculated by using the LCPT (linear conversion) method, which compares the cost of capital to the acquisition price, as well as adjusts for the amount of time the business spends on operations. Likewise, the LCT (linear combination) method can calculate the LCT (logical combination) cost of capital. Both of these formulas are designed for use with the Excel version of Microsoft Money. A third option, the Sale-and-Call Method, which allows multiple calls to be made based on a single contract and contracts entered in the same day, can also be calculated using the Excel version of Microsoft Money.