05-02-2014 Capitalization Table Modeling

Hands-on modeling training in the construction of capitalization tables
The workshop has been moved from March 21st to: Friday, May 2nd, 2014

CFA Los Angeles is pleased to offer, in partnership with Wall Street Prep, one of Wall Street Prep's most popular course to equip busy professionals and students with the financial skills they need on the job.


  • Capitalization tables (“cap tables”) enable investors, companies, and advisory firms to analyze investor ownership levels and investor returns under multiple exit scenarios
  • This analysis is critical in guiding stakeholders during capital raise negotiations especially during multiple investment rounds (Series A, B, C, etc.)
  • Modeling a capitalization table can be very challenging and complex, especially when modeling the flow of funds (“cap table waterfall”), and investment banking, private equity, and venture capital associates spend significant time attempting to model capitalization tables without a consistent approach, making models error-prone and difficult to sensitize.


Conceptual overview of early-stage investing

  • Convertible debt common terms and features
  • Convertible preferred stock common terms and features
  • Stock options common terms and features
  • Warrants common terms and features
  • Common equity

Modeling the cap table

  • Pre-investment ownership
  • Modeling investment terms
    • Liquidation preference multiples
    • Participating vs. non-participating preferred shares
    • Capped vs. uncapped participation
    • PIK vs. cash dividends
    • Stacked vs. pari passu participation
    • Stock option pools and warrants
    • Common stock
  • Modeling the exit valuation assumptions

Modeling the waterfall (flow of funds)

  • Modeling dynamic conversion tests
  • Calculating proceeds
  • Inserting error-checks into the waterfall
  • Building a durable decision tree into the waterfall
  • Calculating returns and proceeds at various sensitivities

Click here for information brochure

Time: 8:00 AM-5:00 PM, Friday, May 2nd, 2014

Location:  University of Southern California, Popovich Hall, room 112 (JKP-112)

10% Corporate Discounts available for companies who register 5 or more participants! Click here for more details.

March Registration Link:
$499  for CFALA Members
$599  for Non-Members

Cancellation Policy

Enrollee cancellations must be made in writing and received at least 5 business days before the first day of class.  All cancellations will incur a $30.00 processing fee.  If enrollment is canceled after the 5-day deadline, a 50% cancellation fee will be charged.

For questions about the content of the program or suitability, contact  Rama Malladi, CFA, CAIA, FRM, Director of the Educational Programs,rmalladi@gmail.com or (714) 453-9763


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