Introduction
This guide is for founders and investors. If you care about the financial success of your startup or your portfolio company, you will need to track the value of its equity over time. This is applicable to your shares, but also shares of other stakeholders in the organization that you will often work with.
These videos are a comprehensive walkthrough
Please watch these before reading the rest of the article. They should cover everything you might need
After watching the videos you’ll be able to access these templates for $5 a month (subscribe as a premium user at https://portal.founderskit.org)
✓ Any user that signs up for the $5 a month special launch pricing will have that rate for 2 years (with a limit of 100 sign ups)
Register here: https://portal.founderskit.org
Assumptions
By default the app assumes your founding team will consist of 3 founders, a strategic hire and 1 employee. If your starting configuration is different, add or remove row entries as needed
Here is a dictionary that details the differences between each row entry that asks for options. If you are a founder or a VC, you will need to memorize these definitions in the course of your business
| Term | Definition |
|---|---|
| Options outstanding | An outstanding stock option refers to an option contract that has not been exercised and has not expired. An example of this would be when you hire an employee sign a stock option contract with them. The option contract has not yet been exercised yet. |
| Promised Option | Promised options mean options you haven’t officially granted to your team. These options could be in connection with a scope of work contract. Perhaps you signed a contract with a contractor where options would be part of the compensation conditional upon complete delivery of the agreed upon scope. And the work is currently in progress. |
| Options available | These are options or essentially shares of your company not yet allocated to a person or to a stock option plan. Typically, when a startup is first formed there will be 10,000,000 shares created. If the company has not completed all of their hiring yet prior to a priced round, the remaining or “available” set of those shares would be rolled over to the sized option pool associated with the terms of the price round investment |
Modify the numbers for each of the 3 row values for options. The total for all shares should sum up to 10,000,000 matching the number of shares specified on your Certificate of Incorporation (also known as your Articles of Incorporation).
The numbers in blue represent fields that you as a user should modify - they represent the input variables of the spreadsheet. The next step is to fill in the values for cells C16 and C18. They represent respectively the amount of capital they deploy into your company and the valuation cap associated. In this spreadsheet, we make the assumption that the Safe note contains no discount, and has a valuation cap. In the industry this is the most common case.
In this guide we assume that you will have 2 Safe investors. If there are more, you are able make a copy of the template
Now you are in the new file which you named “Stacked Post-money Safe to Series A”. If you exit the app, you can log back in and find it in your saved documents.
