Cap Table for Pre Series A

The pre-series A cap table is used to show the effect on the percentage of ownership of a business following the introduction of pre-series A equity capital. During its early stages, a business might have an idea that the founders started to develop using their own funds. At some point, before the business can earn its own revenue, it might need additional funding from external sources.

This kind of investment, which is called the seed investment, normally comes in small amounts from outside investors and requires the founders to relinquish a part of their ownership in return for the funding offered. And during this round, it is normal for the investors to ask for at least 15-20% of the company’s ownership in exchange for the funds they are offering.

Whatever be the case, a pre-series A cap table has a very simple structure. Let us suppose that there is a business that has issued shares to its founders and a few other key personnel. The following is how the cap table of the business would look like:

This means that together the founders have 950,000 shares representing 95% of the issued capital. And the other 50,000 shares have been given to the members of the team like the advisors and key employees. The look of the cap table changes after this and becomes more complicated. To know more about the cap table for Pre Series A and the various stages of how it looks for the company, check out our blog or knowledge center here. And if you have not yet started using Eqvista as your cap table application, it’s time to do so. Check out our cap table software here & contact us today!