Lesson 1451 of 1550
AI and Cap Table Modeling: Modeling a Round Without Inventing the Pro-Forma
AI walks the math of a financing round; you verify the share counts and the legal structure.
Lesson map
What this lesson covers
Learning path
The main moves in order
- 1The premise
- 2cap table
- 3SAFE
- 4convertible note
Concept cluster
Terms to connect while reading
Section 1
The premise
A founder needs to model a new round with a SAFE conversion, an option pool top-up, and a discount-note conversion all in the same close. AI can structure the pro-forma waterfall — but one wrong share count drops dilution math by 4%.
What AI does well here
- Walk the standard order of operations (notes/SAFEs convert, option pool tops up, new money).
- Generate the pro-forma table with each step as a column.
- Calculate price per share, post-money, and dilution by stakeholder.
- Draft the explanation paragraph for each existing investor.
What AI cannot do
- Replace the lawyer-reviewed final cap table.
- Know which note has 'most-favored-nation' that triggers on this round.
- Catch a typo in your existing share counts.
Key terms in this lesson
End-of-lesson quiz
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