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ENT 404 · Unit 5 of 6

Cap Tables, Dilution and Scenario Modeling

Entrepreneurial Finance, SAFEs and Cap Tables

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Learning objectives

  • Manage burn, runway, and default-alive vs default-dead paths
  • Apply "Cap Tables, Dilution and Scenario Modeling" to a real venture decision
  • Contribute to your Startup financial model deliverable

Unit overview

#LessonCore idea
1The Business Context for Cap Tables, Dilution and Scenario ModelingCore frameworks for this unit
2Tools and Techniques for Cap Tables, Dilution and Scenario ModelingCore frameworks for this unit
3Managing Complexity in Cap Tables, Dilution and Scenario ModelingCore frameworks for this unit
4Cap Tables, Dilution and Scenario Modeling: Executive SynthesisCore frameworks for this unit

Complete all four lessons, then finish unit assessments on this page.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

50% applied project30% case work20% knowledge checks

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Cap Tables, Dilution and Scenario Modeling45 min
Complete a focused practice exercise on **Cap Tables, Dilution and Scenario Modeling**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ENT 404.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Cap Tables, Dilution and Scenario Modeling30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ENT 404 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Case analysis

Analyze a case using frameworks from this unit.

CaseCase analysis: Cap Tables, Dilution and Scenario Modeling60 min
Analyze a real business case through the lens of **Cap Tables, Dilution and Scenario Modeling**. Choose a public company event, HBR-style case, or documented decision. **Deliverable structure:** 1. Situation summary (150 words) 2. Analysis using this unit's frameworks (400 words) 3. Recommendation (150 words) 4. Risks and what would change your mind

Deliverable

2-page case write-up in your portfolio.

Rubric

  • • Case facts are accurate and sourced
  • • Analysis uses unit frameworks explicitly
  • • Recommendation is justified with tradeoffs
  • • Risks are specific, not generic

Knowledge quiz

Check your understanding before marking the unit complete.

1. RelayOps Series A: $4M investment at $16M pre-money, $1.60/share. New shares issued to Series A investors:

2. Founder Alex holds 3,300,000 shares. After Series A issues 2,500,000 new shares with no pool change, Alex's ownership is approximately:

3. Dilution percentage from a financing equals:

4. RelayOps SAFE converts at 15% ownership before Series A new money. After Series A buys 20% of post-money, founders are diluted by both events. This is why founders model:

5. 1× non-participating liquidation preference means investors receive:

6. RelayOps option pool refresh adds 1,764,706 shares (15% FD). Who is diluted immediately on a pre-money pool refresh?

7. Pro rata rights allow seed investors to:

8. In a down round, anti-dilution (weighted average) protection primarily benefits:

Next unit: Financing Strategy and Investor Readiness →