So let's look at how we can build a simple cap table in Excel. We're going to look at a number of different fundraising rounds for a company and look at how the percentage ownership of different providers of capital changes as we go through these different funding rounds, or in other words, to have a look at the level of dilution that they experience. To start off with, we're going to assume that the founders have a 100% stake in the company, so we'll just get a sum total in for us here, and then we can take that up into the cap table and just link up the founder's stake. We are going to also calculate down the bottom a sum total just to make sure that everything is all linking up. But you can see to begin with, the founder's got a hundred percent, nothing too surprising there to begin with. If we then move down into the next stage of this company's lifecycle, which is to assume that an employee stock option pool has been set up for the early employee hires and it's going to amount to 7.5% of the shares in the company. This is gonna be through an allocation of the existing shares the founders have. So as a result of that, the early employees will hold a 7.5% stake through their employee stock options, and the founders will have given up some of the shares that they issued to themselves on founding the company, and as a result will only own 92.5% of the shares in the company. Those shares are put in trust or in the employee stock option pool for those employees when they exercise their options. Let's take that up to the cap table at the top then we can now see that there has been some dilution from the perspective of the founders in that they no longer have a hundred percent of the company. They've only got 92.5% of their shares in the company. To calculate the dilution that there's experienced by the founders, we need to take 1 minus the percentage ownership that they have after that dilutive event divided by what they had previously, and that will give us the 7.5% dilution. But that formula will work across as we copy this formula to the right.