This note introduces students to the concept of capitalization tables. It defines capital requirements for startup business, helps students create capitalization tables, and provides guidance on how to plan several rounds of financing to fund a startup business.
Note on Capitalization Tables for New Ventures: Figuring Out How Much Money Your Startup Needs, When You Should Raise It, and How Much It Will Cost
by: James D. Price
Core Disciplines: Entrepreneurship & Innovation
Click on any button below to view the available document.
Make sure you are registered and/or logged in to our site to view product documents. Once registered & approved, faculty, staff, & course aggregators will have access to full inspection copies and teaching notes for any of our materials.
If you need to make copies, you MUST purchase the corresponding number of permissions, and you must own a single copy of the product.
Electronic Downloads are available immediately after purchase. "Quantity" reflects the number of copies you intend to use. Unauthorized distribution of these files is prohibited pursuant to term of use of this website.
This product has a teaching note available. Available only to Registered Educators. Please login to view it.
After reading and discussing the material, students should:
- Describe the current capitalization of a privately held company in a standard current capitalization table.
- Analyze the capital required to launch and grow a business, and the extent to which the additional capital from each new round of financing will dilute the proportional ownership of existing shareholders.
- Create a capitalization-planning table for dynamic capitalization forecasting.