# SetSync — Capitalization Table & Equity Dilution Waterfall

**The Filmmaking Operating System**  
*Seed Round Pro-Forma Cap Table & Multi-Round Dilution Modeling*  
**Founder & Product Architect:** Revanth Levaka ([revanthlevaka.com](https://revanthlevaka.com))  
**Target Round:** $1,500,000 Seed SAFE on $7,500,000 Post-Money Valuation  
**Inquiries & Due Diligence:** [revanthlevaka.com](https://revanthlevaka.com)

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## 1. Capitalization Structure Overview

SetSync is structured as an institutional-grade venture corporation with 10,000,000 authorized shares of Common Stock at initial incorporation.

### Round Parameters
* **Founder & Architect**: Revanth Levaka
* **Current Round**: Seed SAFE (Y Combinator Standard Post-Money SAFE)
* **Capital Raise**: **$1,500,000**
* **Valuation Cap**: **$7,500,000 (Post-Money)**
* **Discount**: 20% (Applicable in qualified priced equity round if favorable)
* **Pre-Money Implied Valuation**: $6,000,000

---

## 2. Multi-Round Pro-Forma Cap Table (Pre-Seed $\rightarrow$ Seed $\rightarrow$ Series A)

```
========================================================================================================================
SHAREHOLDER / ENTITY           PRE-SEED (FOUNDATION)        POST-SEED (PRO-FORMA)       POST-SERIES A (PROJECTED)
                                Shares       % Ownership     Shares       % Ownership    Shares       % Ownership  Valuation
========================================================================================================================
Revanth Levaka (Founder)       8,000,000        80.00%      8,000,000        64.00%     8,000,000        49.60%   $14,880,000
Unallocated ESOP Pool (15-20%) 2,000,000        20.00%      2,000,000        16.00%     1,935,484        12.00%    $3,600,000
Key Hires Allocated                   0          0.00%              0         0.00%       467,742         2.90%      $870,000
Seed Investors (SAFE)                 0          0.00%      2,500,000        20.00%     2,500,000        15.50%    $4,650,000
Series A Investors ($6M Lead)         0          0.00%              0         0.00%     3,225,806        20.00%    $6,000,000
------------------------------------------------------------------------------------------------------------------------
TOTAL FULLY DILUTED SHARES    10,000,000       100.00%     12,500,000       100.00%    16,129,032       100.00%   $30,000,000
========================================================================================================================
Effective Share Price             $0.0001 (Par)                 $0.6000                         $1.8600
Company Valuation              $1,000 (Initial)            $7,500,000 (Post)               $30,000,000 (Post)
Seed Investor MOIC / ROI               -                           1.0x                            3.1x ($4.65M Value)
```

---

## 3. Seed SAFE Conversion Mechanics

### Y Combinator Post-Money SAFE Standard
The $1,500,000 Seed investment converts pursuant to the standard Post-Money SAFE framework:
$$\text{Seed Ownership \%} = \frac{\text{Investment Amount}}{\text{Post-Money Valuation Cap}} = \frac{\$1,500,000}{\$7,500,000} = 20.00\%$$

* **Founder Non-Dilution by Other SAFEs**: The Post-Money SAFE locks the investor's exact percentage ownership at 20.00% irrespective of other convertible notes issued in the round.
* **Effective Price Per Share**:
  $$\text{Effective PPS} = \frac{\$7,500,000}{12,500,000\text{ shares}} = \$0.60/\text{share}$$
* **Founder Retained Control**: Founder Revanth Levaka maintains **64.00% clear absolute majority voting control** following the close of the Seed round.

---

## 4. Forward Series A Dilution Modeling

### Assumptions for Series A (Month 18–24 Milestone)
* **Arr Target at Series A**: $2.0M–$2.5M ARR with 84% Gross Margins and K=2.4 organic growth.
* **Capital Raise**: **$6,000,000**.
* **Pre-Money Valuation**: **$24,000,000** ($30,000,000 Post-Money Valuation, 12x–15x ARR multiple).
* **Series A Target Dilution**: 20.00%.
* **Option Pool Refresh**: Maintained at 12.00% post-Series A unallocated for VP Engineering, Head of Production Relations, and key machine learning/systems hires.

### Return on Investment for Seed Backers
* Initial Seed Investment: **$1,500,000**.
* Post-Series A Stake Value: **$4,650,000**.
* **Multiple on Invested Capital (MOIC)**: **3.1x in 20 months**.

---

## 5. Governance, Vesting & Protective Provisions

### Founder Equity Vesting
* **Vesting Schedule**: Standard 4-year vesting schedule with a 1-year cliff (25% vests after 12 months, followed by 1/48th monthly vesting).
* **Founder Credit**: Revanth Levaka credited with 12 months for prior proprietary architecture development, monorepo engine authoring, and IP delivery.
* **Acceleration**:
  * **Double-Trigger Acceleration**: 100% immediate vesting acceleration upon Change of Control (acquisition/merger) combined with involuntary termination or material change in role.

### Employee Stock Option Plan (ESOP)
* An unallocated reserve of 2,000,000 shares (16.0% post-Seed) reserved for top engineering, product, and film industry executive talent.
* Standard 4-year vesting, 1-year cliff, 10-year exercise window upon termination for early employees.

### Board of Directors & Voting Rights
* **Post-Seed Board Composition (3 Seats)**:
  1. **Seat 1 (Common / Founder)**: Revanth Levaka (Chairman & CEO).
  2. **Seat 2 (Common / Management)**: Executive nominated by Founder.
  3. **Seat 3 (Independent / Industry Expert)**: Veteran film producer or studio technology executive mutually agreed upon by Founder and Seed Lead Investor.
* **Protective Covenants**: Standard customary protective provisions (merger approval, liquidation, issuance of senior securities, alteration of charter rights).