How to run a waterfall analysis

Waterfall Analysis

Wendy Canady avatar
Written by Wendy Canady
Updated over a week ago

Cyndx Owner allows you to create one or multiple scenarios to analyze how a potential exit or financing round will affect your cap table. Easily run waterfall analyses based on an existing cap table and specific assumptions for future financing rounds and exit valuation. The results show how much cash will be distributed to each security holder including founders, employees, and investors based on the terms of the instruments they hold. The waterfall is important for understanding how much each holder stands to benefit from an exit at a given price. Accordingly, it is critically useful for negotiations with investors and potential acquirers.

Navigate to the Scenarios & Waterfall Analysis page

  1. Sign in to Cyndx and go to the Owner tab

  2. On the left-hand navigation bar, select Scenarios & Waterfall Analysis

  3. Click on Run Waterfall Analysis of the applicable scenario

Example

Run Waterfall Analysis

Related Articles: See here how to compare waterfall scenarios

Read more on waterfall analyses in our Cap Table Glossary

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