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A Startup Capitalization Table template is an Excel template which helps businesses identify their funding sources. There are different types of venture capital and funding sources such as angel investors, venture capitalists or network investors. Each type of funding has a different way of determining the value of the stake they are prepared to provide. Also, the amount of equity capital required by a company may vary based on the amount of money raised from various sources. Therefore, it is important to keep this in mind when you are drawing up your startup capital table.

A Startup Capitalization Table template is used to show the ownership percentages of a company and the value of each type of equity stake that a company is prepared to raise. A Capitalization Table shows the owners percentage of ownership, the value of each stake and their respective dates. A Capitalization Table also shows the total number of shares that will be owned by the founders. This figure is called the startup cap table because it represents the total number of shares that will initially be owned by the founders. The number of shares that will initially be owned are referred to as the “capped” or “dry” spots.

Usually the startup cap table will include two parts. The first part is the total number of shares that will initially be owned by the founders. The second part of the template shows the date on which the first share is sold. This date is usually listed in bold letter above the name of the company that is the seller of the initial stake. The date should be specific and correct. If a company is listed on the Nasdaq, there is usually a rule that the first day on which the shares can be sold is called the “day of sale”.

Startup capitalization is not one of the major considerations for initial investors. Most new companies that are started are being formed because of someone’s need to finance their start up. Most angel investors and venture capital firms look at these types of capitalization risks as they relate to private funding sources. Private funding sources are not included in the Nasdaq capitalization table as they are usually not venture capital firms.

Startup capitalization is important to investors because they allow companies to generate the revenue that they are going to need as they are growing. These revenue streams are usually quite short term. In the case of some businesses this is usually only one year. Startup capitalization is considered by most to be relatively low risk because of the fact that the startup owner does not yet have a significant amount of invested capital. Investors do not usually see this as a large financial risk because they do not yet have a significant amount of money invested.

The startup capitalization tables summary shows the numbers for equity as well as retained earnings. When you download your Excel startup cap table template you can select the equity numbers in the copy and then copy and paste them into the blank data cells for the calculation. This makes the whole thing much easier because you do not have to multiply rates by thousands nor have to do any rounding or anything like that.

Startups usually have less than 100 million equity. Therefore, it is unlikely that you will have any trouble finding an appropriate funding source for your startup. Capital amounts will vary according to a number of things including the industry that you are in, your past business history and the market competition. There are startup capital management companies that will provide you with a customized startup cap management solution. The Excel startup cap table templates can also be downloaded for free.

The Startup Capitalization Table and the startup entrepreneurs that depend on it must continue to do the necessary research in order to determine the funding options that are available to them as well as the funding sources that they should avoid. This information is available to all investors. It is just up to the startup founders to take advantage of it. In summary, the Startup Capitalization Table Template provides a great data base for calculating venture capital as well as other analysis that will assist new startups in their search for funding sources.