Waterfall Model
A waterfall model allows you to evaluate the proceeds that each security class and shareholder will receive at varying exit prices.
Why beta?
The math you'll see in the model is accurate based on all of the terms we're including, and using the dates and terms of your cap table data. However, there are a few things not yet supported that we want to make clear as you evaluate the data.
- We handle several dividend scenarios, cash and stock linked to preferences. Other dividend scenarios are not supported.
- Stock appreciation rights are treated as options (so have a cost basis)
- management carve-outs
- Stock option acceleration clauses are not taken into account, either all options accelerate or none of them