Clara’s new tool automatically generates a clear and concise cap table that does all the conversion mathematics for them
Clara, the legal operating system that empowers tech company founders to digitally form, manage and scale their startups, is today launching a free cap table calculator for startups.
A cap (short for capitalization) table is a document outlining a company’s ownership structure, specifically the percentage of ownership held by each shareholder and the type of securities they hold (such as ordinary shares, preferred shares, options and warrants). A cap table includes details such as initial investment, funding rounds and equity grants.
Cap tables are important in determining the value of a company, in raising capital, and in making strategic decisions. A cap table is also a useful tool for founders to assess their funding round goals, allowing a clear overview of the company’s value and ongoing financial situation.
All you have to do is enter your estimated funding amount, pre-money valuation, and desired post-raise percentage set aside for unissued options. The Clara calculator takes care of the rest and provides a clear view of current ownership. Data can be added, deleted and amended in real time, with the chance to add multiple investors, and start-up specific investment agreements such as SAFEs (Simple Agreement for Future Equity).
Patrick Rogers, CEO and Co-Founder of Clara, explains: “Clara is all about bringing straightforward automation to the legal requirements start-ups need. Cap tables might sound complicated and time-consuming, but they don’t have to be. Our free calculator is a powerful tool designed to help startup founders easily track the ownership structure of their companies.”
“It’s hassle-free and eliminates the complexity of doing it manually – and delivers instant results, allowing founders to get instant feedback on how future fundraising scenarios will affect their ownership stakes. As well, this free calculator gives founders a glimpse into the overall power of the Clara platform, which includes a much more sophisticated cap table management tool that provides multiple charts, analysis, stakeholder sharing and an Excel export prompt.
Clara is a member of the Open Cap Table Coalition, and later this quarter will be launching the new version of its cap table which is being built on the open cap table format (.ocf), meaning the cap table will be fully transferable with other providers that use this innovative cap table format. The Cap Table calculator is available to demo here.
