How to use the round modeling tool
Follow these steps to effortlessly model new preferred financing rounds and gain a clear understanding of how each scenario will impact the company’s capitalization structure and ownership.
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Navigate to Raise funds → Modeling tools → click Get started under Model priced rounds → click within the scenario to enter your inputs. The capitalization breakdown table at the bottom of the page will update to reflect your entries as you work.
Input
Description
Investment
The amount of new money being invested in the round
Pre-money valuation
The valuation for the company prior to the new capital being invested in the round. The pre-money valuation is assessed by specific providers to gauge how much a company is currently worth.
Option pool after round
The desired ending option pool percentage after the round is complete. Carta's model calculates the price per share and fully diluted shares to achieve the target post-money option pool.
Closing date
The date when the investment will be finalized and recorded
Add specific security information for any new and existing stakeholders. Click the links if you’d like to add SAFEs and convertible notes, entering the Stakeholder name, the Investment amount, the Valuation cap, and a Discount, if applicable. For SAFEs, select the type (Pre-money or Post-money) as well.
After entering all applicable round information, scroll down to the Capitalization Breakdown table to review.
