Venture Capital Financial Modeling

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.

Cap table template

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 a capital 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.