How are scenarios calculated?

When calculating post-scenario cap tables, CapGuru adds option pool increases and Convertible securities whose provisions are triggered by the scenario post-money. Convertible securities can either be convertible debt or equity. Thus, the Scenario price per share is the Scenario Pre-money valuation divided by the fully diluted shares. Convertible equity and convertible debt (“Convertibles”) that are triggered by the scenario are priced based on the terms agreed to in the purchase agreements; i.e., taking into account valuation caps and discounts that may exist.

Changes in shares are explicitly shown in the two center columns labeled “Invested / Converted” and “New Units.”

Because Convertibles may be priced at a discount to the calculated Scenario price per share, the Post-Scenario Valuation may be less than the sum of the Scenario Pre-money valuation plus the amount raised inclusive of Convertibles.