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
- Corporate documents — certificate of incorporation, stockholder agreements, option plans, convertible note/SAFE agreements, prior cap tables
- Current share register — all holders by name, class, share count; outstanding options with exercise prices and vesting; warrants with terms
- Preferred stock terms — liquidation preferences (multiple, participating/non-participating), anti-dilution provisions, conversion ratios, dividend rights per series
- 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:
- Preferred stock — reverse chronological by series
- Common stockholders — founders, employees, other
- Option pool: outstanding grants (exercise price range), exercised (now common), available for future grants
- 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:
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
1---2name: pro-forma-cap-table3description: 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.4tags:5 - analysis6 - corporate7 - drafting8---910# Pro Forma Capitalization Table1112Models a company's ownership structure before and after a contemplated transaction, showing dilution effects and economic implications for all stakeholders.1314## Prerequisites15161. **Corporate documents** — certificate of incorporation, stockholder agreements, option plans, convertible note/SAFE agreements, prior cap tables172. **Current share register** — all holders by name, class, share count; outstanding options with exercise prices and vesting; warrants with terms183. **Preferred stock terms** — liquidation preferences (multiple, participating/non-participating), anti-dilution provisions, conversion ratios, dividend rights per series194. **Transaction terms** — investment amount, pre-money valuation, price per share, new investor allocations, option pool target, conversion mechanics (caps, discounts, interest)2021## Output Structure2223### Section 1: Header & Assumptions2425| Element | Detail |26|---|---|27| Company legal name | As registered with Secretary of State |28| Date of preparation | Current date |29| Designation | "PRO FORMA — not final or binding" |30| Reference date | Baseline capitalization date |31| Transaction type | Seed, Series [X], note conversion, pool expansion, etc. |3233**Assumptions table:**3435| Assumption | Value |36|---|---|37| Pre-money valuation | $ amount + derivation method |38| New capital raised | $ amount |39| Post-money valuation | $ amount |40| Price per share | Calculation: pre-money ÷ pre-money fully-diluted shares |41| Liquidation preference | Multiple + participating/non-participating |42| Anti-dilution | Weighted average / full ratchet / none |43| Option pool timing | Pre-money or post-money inclusion |44| Option pool target | % of post-transaction fully-diluted |45| Convertible instrument terms | Cap, discount, interest rate, MFN |4647### Section 2: Pre-Transaction Capitalization4849| Holder / Category | Class | Shares Held | As-Converted % | Fully-Diluted % |50|---|---|---|---|---|5152**Row order:**531. Preferred stock — reverse chronological by series542. Common stockholders — founders, employees, other553. Option pool: outstanding grants (exercise price range), exercised (now common), available for future grants564. Warrants / other derivatives (exercise price, expiration)5758Footnote each preferred series with liquidation preference amount, participation rights, accrued dividends.5960**Definitions:**61- **As-converted** = all preferred converts to common; excludes unissued pool shares62- **Fully-diluted** = as-converted + all outstanding options/warrants + entire unissued pool6364### Section 3: Transaction Adjustments6566Present each adjustment sequentially.6768**New equity issuance:**6970| Investor | Shares Issued | Price/Share | Investment ($) |71|---|---|---|---|7273**Convertible note conversion:**7475| Holder | Principal | Accrued Interest | Total Converting | Conversion Price | Shares Issued |76|---|---|---|---|---|---|7778Conversion price = min(cap-based price, discounted price). Show derivation.7980**SAFE conversion:**8182| Holder | Investment | Valuation Cap | Discount | Conversion Price | Shares Issued |83|---|---|---|---|---|---|8485**Option pool expansion:**8687| Item | Shares |88|---|---|89| Pre-transaction pool | X |90| New shares added | X |91| Post-transaction pool | X |92| Pool as % of post-transaction FD | X% |9394Note whether expansion is pre-money (dilutes existing holders) or post-money (dilutes all including new investors).9596**Repurchases / cancellations** (if applicable): holder, shares, price, reason.9798### Section 4: Post-Transaction Capitalization99100| Holder / Category | Class | Pre-Txn Shares | New / Converted | Post-Txn Shares | As-Converted % | Fully-Diluted % |101|---|---|---|---|---|---|---|102103Same row order as Section 2; new series listed first. Include subtotals per class and grand total.104105**Verification checklist:**106- [ ] All FD ownership percentages sum to 100.00%107- [ ] All as-converted percentages sum to 100.00%108- [ ] Post-txn shares = pre-txn + new issuances + conversions + pool expansion − repurchases109- [ ] Price per share × new shares = total new investment110111### Section 5: Exit Waterfall (if multi-series preferred)112113Model distribution at illustrative exit values:114115| Exit Value | Series [Latest] Pref | Series [Earlier] Pref | Common + Options | Total |116|---|---|---|---|---|117| 1× post-money | | | | |118| 2× post-money | | | | |119| 3× post-money | | | | |120121Show how liquidation preference stacks and participation caps affect each class.122123### Section 6: Notes & Disclaimers124125- Methodology disclosure (option pool in/out of FD denominator)126- Anti-dilution mechanics explanation (weighted average formula if applicable)127- Contingencies: board/stockholder/regulatory approval required128- Standard disclaimer: pro forma only, not legal/financial/tax advice, review with counsel129130## Guidelines131132- Share counts as whole numbers; percentages to two decimal places133- Bold subtotals and grand totals; mark every section "PRO FORMA — CONFIDENTIAL"134- Define terms on first use ("Fully-Diluted Capitalization," "As-Converted Basis") and use consistently135- Flag missing or estimated data with `[ESTIMATED]` or `[TBD]` and explain basis136- Anti-dilution: weighted average is standard; full ratchet is rare — confirm which applies137- Option pool convention: Silicon Valley standard is pre-money inclusion (dilution borne by existing holders); note if post-money convention is used138- Do not provide tax, securities compliance, or accounting treatment analysis