Creating and Understanding a New Finance Round Scenario

Creating a New Finance Round Scenario

Create a New Finance Round Scenario in Qapita

Steps:

1. From the left menu, click Scenarios, then Perform New analysis, and select Finance Round.

2. Under "Create New Scenario Model," enter Scenario Name and Round Name.

3. Input Pre Money Valuation, New Investment, and Exchange Rate (if applicable).
4. For Option Pool Top-Up:
   • Select Yes to add a new top-up percentage.
   • Select Keep Existing to retain the current pool.
5. If converting Convertible Notes:
   • Choose Conversion Method (Pre Money, %Ownership, or Amount Invested).
   • Select "Yes" for relevant Convertible Notes (e.g., Note A) to include in conversion.

6. Select "Yes" for Include Anti-Dilution? to model its impact in a down round.
7. Under Investor Details(showing "Unallocated Investment"), add investors:
   • Click Add Existing Investor: Select and enter investment.
   • Click New Investor: Select and enter investment.

8. Review the Total Amount Invested breakdown (Existing, New, Unallocated).
9. Click Save Scenario.
10. The Pro Forma Capitalization will then be displayed.

Funding Round Scenario Screen

Understanding Your Funding Round Scenario Results in Qapita

In Qapita, the funding round scenario results page offers a detailed overview of what a hypothetical funding round would mean for your company. While an image of the page layout would typically be here, imagine a clear, intuitive display of all critical data points at a glance.

1. Detailed Insights for All Stakeholders

The results page provides an in-depth look at the implications for both your existing shareholders and any new investors joining the Cap Table. You gain immediate clarity on how the round impacts everyone involved.

    2.  Impact of Convertible Notes & Employee Options

A crucial feature of this page is its ability to showcase the impact of various financial instruments and employee-related adjustments. This includes:

• Detailed insights into the conversion of Convertible Notes, illustrating their effect on the Cap Table.
• The ramifications of Employee Option Pool top-ups, ensuring you understand the dilution effects and new share allocations for your team.

     3. Precision in Share Allocation & Ownership

With Qapita, guesswork is eliminated. The results page precisely calculates:

• The exact number of shares that will need to be allocated to the new investor(s).
• Everyone’s updated fully diluted ownership percentage, providing a clear picture of the new ownership structure post-funding.

      4. Revisit Your Scenarios Anytime

Once you've created and saved a funding round scenario, it's not a one-time view. You can easily revisit and review the scenario results at any later time, allowing for continuous analysis and strategic planning without needing to recreate your inputs.