The Equity Section is not for cap table management (we recommend CARTA for this) and, in fact, only has two purposes:

1) Keep track of your accumulated retained earnings (profit / loss each month to balance your balance sheet).

2) This section is where you add expected capital / fundraises as "Investment" objects to increase your cash balance. Each expected raise is entered separately.

Note: The equity section, like all balance sheet sections (assets, liabilities, and equity) behaves slightly differently than the rest of the model. In other sections when you input an object the value is expected to be applied newly each month (for example, if you have a monthly expense for $1000 then each month you expect it to cost $1000). For balance sheet items, like an investment, the amount you see is a running total. This means if you enter a $1,000,000 investment, you will see a value of $1,000,000 for the month it occurs and every month after. This does NOT mean you are getting an additional $1,000,000 every month- instead it is a running record that the value of that investment was $1,000,000.


Inputting Historical Equity Items

1) Typically, it's not necessary to list each contribution separately as its own investment object. Instead, it's very common practice to roll all contributions that pre-date the model and are already factored into the cash balance as one "Prior Investments" item that sums all the contribution amounts.

2) For historical equity items make sure the "starting value" matches the "investment amount" so that Cash is not increased- this is because the money was already received and already factored into the cash.

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