Angels face many challenges when investing in startup ventures. One crucial, but sometimes overlooked detail, is the impact of new funding on the company’s capital structure. Whether funding comes as equity or debt, the savvy investor needs to understand how this round of funding will impact the ultimate outcome for shareholders. Thus, early-stage investors need to be fluent in the structure of cap tables to understand the impact on their potential returns from current and future rounds of funding.

The Angel Capital Association, in cooperation with VentureSouth, offers entrepreneurs and investors a practical education in understanding the details of cap tables through the lifecycle of a startup venture. This course will include a combination of presentations, exercises and a case study to illustrate common cap table mathematics a startup and its investors must consider. Among the important topics are the impacts of: valuation, liquidation preferences, anti-dilution terms, convertible notes, option pools and vesting.