Cap Table Simulator

A capitalization table is the definitive record of who owns what in a company. For startup founders, understanding your cap table is not optional. Every fundraising conversation, every hire who asks about equity, and every board meeting will reference this document. Getting it wrong leads to nasty surprises during due diligence or, worse, disputes between co-founders and investors.

This Cap Table Simulator lets you model the three core components of early-stage ownership: founder shares, investor shares, and the employee option pool. You enter the number of shares each party holds and the size of the option pool as a percentage. The tool then calculates total shares outstanding, each party's ownership percentage, and the implied post-money valuation based on the investment amount.

One of the most misunderstood aspects of cap tables is the option pool. Investors typically require the pool to be created before their investment, which means the dilution comes entirely from the founders' side. This simulator accounts for that by computing pool shares on a pre-money basis, carving them out before calculating final percentages. The result shows you exactly how much ownership founders retain after both the investment and the pool creation.

Post-money valuation is derived from the investor's ownership stake and their investment amount. If an investor puts in $2 million for 20 percent of the company, the implied post-money valuation is $10 million. This figure is critical for setting expectations in future rounds and understanding the price per share.

Use this tool early and often. Model different scenarios before entering negotiations so you walk into term sheet discussions with clear numbers and realistic expectations.