Use the resources I’ve shared below to learn the key concepts of venture capital financial modeling and to practice your venture capital financial modeling skills.
How to model a VC cap table
A case study on how to build a cap table for a new company completing the first rounds of funding.
This interactive infographic shows how different funding events will affect startups and investors over time, and at exit.
How to model a fund
How to model dilution
Founder ownership math, and why nitpicking over round-by-round dilution isn’t always worth it
How pro rata rights protect investors from dilution
How to model convertible notes
All of the parts of convertible notes, and their impact on investor equity, explained.
Key characteristics of convertible debt from the perspective of a founder.
How convertible notes work with examples.
Check out the three methods to calculate convertible note conversion.
Numerical Example: $25k convertible note with $5M cap, 20% discount.
Numerical Example: $25k convertible note with $5M cap, no discount.
How to model option pools
How to play option pool shuffle
Option pool negotiation tactics
How to model SAFEs
The complete guide to SAFEs with examples.
Numerical Example: SAFE, cap, no discount.
SAFE calculator in Excel to calculate the post-money and pre-money SAFE from Y-Combinator.
How to model a VC exit
Ultimate guide to understanding liquidation preferences.
Liquidation termsheet and how it impacts a founder’s post-investment stake in the company.
How to calculate a startup’s exit value.
How to model out a liquidation scenario.