How to Use Funding Scenario Modeling

Funding Scenario Modeling helps you simulate a new funding round and understand its impact before making changes to your official cap table.

With this tool, you can:

• Simulate a new funding class and see how it affects ownership percentages and dilution for existing and new investors
• Model the conversion of SAFE and CLA agreements in the new funding round

Start a New Funding Scenario

To begin, click ➕ Funding Class.

Then enter the new funding round details:

• New Class Name
• Expected Closing Date
• Post-Round Options Target (optional)
  • Can apply to all options
  • Or to unallocated options only
• Investment Amount
• Pre-Money Valuation

Add Warrants, If Applicable

If warrants are included in the round, check the Warrants checkbox and enter:

• Warrants Coverage %
• Exercise Price Multiplier

SAFE and CLA Conversion Details

In the SAFE and Dilution Details table, you'll find all SAFE agreements, CLA agreements, and anti-dilution provisions that have been defined in the cap table.

These instruments and provisions are automatically pulled from the Cap Table module and included in the funding round simulation.

By default, all eligible SAFE agreements, CLA agreements, and anti-dilution mechanisms are enabled and will be applied as part of the simulation.

If you do not want a specific agreement or provision to be included:

• Click Unselect next to the relevant item.

The simulation results will automatically update to reflect your selection.

To learn how to add or update SAFE and CLA agreements, see the How to Issue SAFEs and CLAs guide.

To learn how to configure or update anti-dilution provisions, see the How to add Anti-Dilution Protection guide.

Add Investor Classification

You can add investors participating in the new funding round by entering:

• Investor name
• Relationship
• Investment amount

Then click Add.

You can add as many investors as needed.

If only some investors are classified, the remaining investment amount will appear under Other Investors.

You can also run the simulation without classifying specific investors.

How to Read the Simulation Results

Once the scenario is created, the simulated cap table will display the impact of the new funding round.

The results include:

• A new column for the new funding round
• The number of shares allocated to each investor
• Updated ownership percentages
• Updated dilution calculations

If SAFE or CLA agreements were selected for conversion:

• A separate column will be added for each converted SAFE or CLA
• The converted shares will appear under the relevant investor

Post-Round Details

The simulation also displays post-round summary data, including:

• Ownership percentage distribution
• Post-round valuation
• Calculated price per share
• Ownership breakdown pie chart