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name: pro-forma-cap-table language: en description: Drafts a pro forma capitalization table modeling ownership before and after a financing event or corporate transaction. Calculates dilution, conversion mechanics, option pool impacts, and ownership on as-converted and fully-diluted bases. Use when modeling seed rounds, Series A/B/C financings, convertible note or SAFE conversions, option pool expansions, stock splits, or cap table restructurings. tags:

• analysis
• corporate
• drafting

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Pro Forma Capitalization Table

Models a company's ownership structure before and after a contemplated transaction, showing dilution effects and economic implications for all stakeholders.

Prerequisites

1. Corporate documents — certificate of incorporation, stockholder agreements, option plans, convertible note/SAFE agreements, prior cap tables
2. Current share register — all holders by name, class, share count; outstanding options with exercise prices and vesting; warrants with terms
3. Preferred stock terms — liquidation preferences (multiple, participating/non-participating), anti-dilution provisions, conversion ratios, dividend rights per series
4. Transaction terms — investment amount, pre-money valuation, price per share, new investor allocations, option pool target, conversion mechanics (caps, discounts, interest)

Output Structure

Section 1: Header & Assumptions

Element	Detail
Company legal name	As registered with Secretary of State
Date of preparation	Current date
Designation	"PRO FORMA — not final or binding"
Reference date	Baseline capitalization date
Transaction type	Seed, Series [X], note conversion, pool expansion, etc.

Assumptions table:

Assumption	Value
Pre-money valuation	$ amount + derivation method
New capital raised	$ amount
Post-money valuation	$ amount
Price per share	Calculation: pre-money ÷ pre-money fully-diluted shares
Liquidation preference	Multiple + participating/non-participating
Anti-dilution	Weighted average / full ratchet / none
Option pool timing	Pre-money or post-money inclusion
Option pool target	% of post-transaction fully-diluted
Convertible instrument terms	Cap, discount, interest rate, MFN

Section 2: Pre-Transaction Capitalization

Holder / Category	Class	Shares Held	As-Converted %	Fully-Diluted %

Row order:

1. Preferred stock — reverse chronological by series
2. Common stockholders — founders, employees, other
3. Option pool: outstanding grants (exercise price range), exercised (now common), available for future grants
4. Warrants / other derivatives (exercise price, expiration)

Footnote each preferred series with liquidation preference amount, participation rights, accrued dividends.

Definitions:

• As-converted = all preferred converts to common; excludes unissued pool shares
• Fully-diluted = as-converted + all outstanding options/warrants + entire unissued pool

Section 3: Transaction Adjustments

Present each adjustment sequentially.

New equity issuance:

Investor	Shares Issued	Price/Share	Investment ($)

Convertible note conversion:

Holder	Principal	Accrued Interest	Total Converting	Conversion Price	Shares Issued

Conversion price = min(cap-based price, discounted price). Show derivation.

SAFE conversion:

Holder	Investment	Valuation Cap	Discount	Conversion Price	Shares Issued

Option pool expansion:

Item	Shares
Pre-transaction pool	X
New shares added	X
Post-transaction pool	X
Pool as % of post-transaction FD	X%

Note whether expansion is pre-money (dilutes existing holders) or post-money (dilutes all including new investors).

Repurchases / cancellations (if applicable): holder, shares, price, reason.

Section 4: Post-Transaction Capitalization

Holder / Category	Class	Pre-Txn Shares	New / Converted	Post-Txn Shares	As-Converted %	Fully-Diluted %

Same row order as Section 2; new series listed first. Include subtotals per class and grand total.

Verification checklist:

• All FD ownership percentages sum to 100.00%
• All as-converted percentages sum to 100.00%
• Post-txn shares = pre-txn + new issuances + conversions + pool expansion − repurchases
• Price per share × new shares = total new investment

Section 5: Exit Waterfall (if multi-series preferred)

Model distribution at illustrative exit values:

Exit Value	Series [Latest] Pref	Series [Earlier] Pref	Common + Options	Total
1× post-money
2× post-money
3× post-money

Show how liquidation preference stacks and participation caps affect each class.

Section 6: Notes & Disclaimers

• Methodology disclosure (option pool in/out of FD denominator)
• Anti-dilution mechanics explanation (weighted average formula if applicable)
• Contingencies: board/stockholder/regulatory approval required
• Standard disclaimer: pro forma only, not legal/financial/tax advice, review with counsel

Guidelines

• Share counts as whole numbers; percentages to two decimal places
• Bold subtotals and grand totals; mark every section "PRO FORMA — CONFIDENTIAL"
• Define terms on first use ("Fully-Diluted Capitalization," "As-Converted Basis") and use consistently
• Flag missing or estimated data with [ESTIMATED] or [TBD] and explain basis
• Anti-dilution: weighted average is standard; full ratchet is rare — confirm which applies
• Option pool convention: Silicon Valley standard is pre-money inclusion (dilution borne by existing holders); note if post-money convention is used
• Do not provide tax, securities compliance, or accounting treatment analysis