Now, entrepreneurs can avail of a new tool that simplifies capitalization complexity and does all the conversion mathematics for their business needs

Clara, the legal operating system reputed for empowering tech company founders to digitally form, manage and scale their startups, has launched a free cap table calculator for startups.

A cap table, or capitalization table, is a document that states a company’s ownership structure, the percentage of ownership by its shareholders and the type of securities they possess including ordinary shares, preferred shares, options and warrants. The table also includes details such as initial investment, funding rounds and equity grants.

This valuable tool for businesses is important in determining the value of a company, raising capital, and in making strategic decisions. Through a cap table, founders can assess their funding round goals, and get a clear overview of the company’s value and ongoing financial situation.

A user simply needs to enter the estimated funding amount, pre-money valuation, and desired post-raise percentage set aside for unissued options. The calculator takes care of the rest and provides a clear view of current ownership. Data can be added, deleted, and amended in real time, with the chance to add multiple investors and start-up specific investment agreements such as Simple Agreement for Future Equity or SAFEs.

According to Patrick Rogers, CEO and Co-Founder of Clara: “Clara is all about bringing straightforward automation to the legal requirements start-ups need. Cap tables might sound complicated and time-consuming, but they don’t have to be. Our free calculator is a powerful tool designed to help startup founders easily track the ownership structure of their companies.”

He added, “It’s hassle-free and eliminates the complexity of doing it manually – and delivers instant results, allowing founders to get instant feedback on how future fundraising scenarios will affect their ownership stakes. As well, this free calculator gives founders a glimpse into the overall power of the Clara platform, which includes a much more sophisticated cap table management tool that provides multiple charts, analysis, stakeholder sharing, and an Excel export prompt.”

A member of the Open Cap Table Coalition, Clara will be launching later this quarter a newer version which is being built on the open cap table format (.ocf), enabling it to become fully transferable with other providers using this innovative platform.