Capital Stack Modelling with Future Assumptions

Hi there. I hope someone can help me out or point me in the right direction here.

I’m looking for a model that is able to take a company’s current capital stack and then with some added assumptions tell me what a future capital stack would look like. I have all the data that would be necessary (I think).

I’m invested in a couple private companies via convertible debt. I’m just an individual investor and not with a VC fund. My background is commercial real estate finance. I’m working on an opportunity now but I’m having trouble seeing what 2-4 years down the road could look like in terms of company capital structure and investment returns. Previous investments were very simple seed rounds with minimal investors. This new opportunity is in the middle of seed and Series A and currently has convertible debt outstanding plus other equity investors and they’re adding more convertible debt.

The below link is something I’ve found for very general calculations but doesn’t give me a whole picture.

https://www.equidam.com/convertible-note-calculator/

I don’t need anything extremely precise. For this less straightforward opportunity, I know a lot about their roadmap, future capital needs, and possible future valuations/exit price. I just want to visualize/model it out so I can see if the future dilution is worth the risk. I think they will ultimately go through Series B/C before being bought out. I’d guess for a figure 10x their valuation cap in their convertible debt…but they’ll have to raise quite a bit more money to get there. 

I’d like to see what results would look like in multiple buyout scenarios.

Any help or insight is greatly appreciated. I’m not looking to take a course and try to build this myself. I’m willing to pay for existing resources if they exist and are reasonable.

Thanks,

PC. 

1 Comments
 

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