Preview: Great Opportunity on February 21st to deepen experience with Cap Tables and Water-falls

Preview:  Great Opportunity on February 21st to deepen experience with Cap Tables and Waterfalls

February 5, 2014

In partnership with the Illinois Venture Capital Association (IVCA), the global full-service financial training firm Wall Street Prep will be conducting a one-day seminar on Friday, February 21st, 2014. The topic will be “Capitalization Modeling,” a technique for investors, companies and advisory firms to track investor ownership levels and model investor returns under multiple exist scenarios. This analysis becomes crucial in guiding stakeholders during capital raise negotiations, especially during multiple investment rounds. The seminar – which runs from 8am to 5pm – will provide instruction for a consistent approach for modeling complex “Capitalization Tables.”
 
This is the second time IVCA has partnered with Wall Street Prep.  Our last Cap Table Modeling event occurred in September and attendee surveys responses were very positive.  Attendees included individuals who all sought a deeper understanding of how to create and interpret cap tables including:
  • Angel Investors
  • Entrepreneurs
  • Corporate VCs
  • VC Associates & Vice Presidents
 
IVCA: What are the biggest mistakes that firms, entrepreneurs and/or investors make when structuring early stage investments, that this seminar will seek to simplify? And in your opinion and research, how does this seminar prepare VC professionals, business analysts and even the entrepreneur?
 
WSP: As far as those mistakes, it has to do with understanding the modeling of how new money or debt conversion impacts existing investors. The seminar provides a good overview of the negotiated items that often are points of contention between venture capitalists and entrepreneurs. For the business analyst, the course provides an excellent in depth education in modeling. 
 
IVCA: When talking about the different types of investor participation and exit strategies, how do 'capitalization tables' (cap tables) allow precise analysis and participation understanding for the parties involved?
 
WSP: The capitalization table is a numerical translation of the term sheet and can be used to model each round of investment and the ultimate proceeds to all shareholders through a dynamic flow of funds schedule. 
 
IVCA: In an exit or  'flow of funds,' often called a 'cap table waterfall,' how will the seminar inform the attendees?
 
WSP: In our course, we will provide education on a detailed flow of funds model which simplifies and automates the optimal outcome given a particular exit value and investor terms. 
 
IVCA: What makes Wall Street Prep, your financial training firm, the go-to solution for understanding issues like Capitalization Modeling? What other courses do you offer?
 
WSP: Wall Street Prep is a leading provider of training on financial modeling, Excel, financial accounting and valuation. We use a hands-on, step-by-step approach to training with real-world case-studies. All of WSP’s instructors, including our instructor for the Capitalization Table Modeling course, Adam McGowan, have strong practitioner experiences.
 
 
The training “Capitalization Modeling” will hosted by the IVCA on February 21st, 2014, and presented by Wall Street Prep. For more information or to sign up, click here.