Preparing for a capital raise? A dynamic pro-forma cap table is a must.
Private life science companies are nearly always looking towards their next financing event. Whether seed stage or Series C, stakeholders must understand in advance how their post-raise ownership might change based on wide-ranging assumptions, including the amount of their investment and the company’s current valuation. A pro-forma cap table is used to model various outcomes to inform decision-making and set proper expectations before the deal is done. But one size does not fit all.
Pro-forma cap table templates and services are abundant online, but they produce static statements that fall short of revealing the most accurate picture in real time. They don’t account for the full range or complexity of possible inputs, such as dilution protection for current shareholders or pre-existing convertible notes. In contrast, Danforth offers a dynamic, customized pro-forma cap table that can reveal all possible outcomes, in real time, with the assuredness required by company founders and leaders, directors, shareholders and prospective investors.
How We Help
- An expertly-built tool – Designed and customized by experts in financial planning and analysis with many decades of experience in modeling for life science financings and related negotiations.
- Dynamic capability – Inputs can be added or changed as new or existing shareholders make commitments, providing real-time data throughout the financing process.
- Flexible delivery – Clients can choose to run the tool themselves or have our team create and run the tool on their behalf as a managed service.
- Fail-safe measures – Quality control is built into the tool to ensure accuracy and ease of use.
- Longer-term view – We understand the legal and other requirements that drive how to format, round and structure the pro-forma to transition smoothly from the pre-financing model to the pro-forma cap table and ultimately to the post-financing cap table.