Felix on Startup Cap Tables: How to model a friends and family round

At Seedcamp, we are lucky to meet hundreds of founders a year who are solving some of the world’s most challenging problems. For many of these individuals, it is their first time raising capital for their startup and, often, we see the same cap table-related mistakes being made early on. These can equate to huge costs down the line as the startup grows. In an effort to help founders avoid making these mistakes early on, we are introducing Seedcamp’s newest how-to series: Felix on Startup Cap Tables.

Over the next few video lessons, our very own investment analyst Felix Martinez will walk you through various cap table exercises, from the simple to the most complex. You’ll learn how to build your own cap table, how to model out different financing options, from equity to convertible notes, how to debug issues you might find in pricing and conversion of rounds, and much more.

To get us started, Felix explains to us what a cap table even is and why it is important to build out your own rather than relying on pre-built templates. Then, he’ll show us the basics by modelling a simple friends and family round. Listen in and leave comments if you have questions! And be sure to email felixmartinez@seedcamp.com if you have ideas for future episodes of Felix on Startup Cap Tables.

Other links: Model Equity Calculator for Founders with Option Pool Expansion

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