Are you talking about a list like this?
Do's:
1. Maintain Transparency: Always be open and honest about the numbers and percentages.
2. Stay Updated: Regularly update the Cap Table to reflect new investments, stock options, or any changes in equity ownership.
3. Detail Dilution: Reflect any dilution that may occur with new investments or rounds of funding.
4. Use Software: Consider using specialized Cap Table management software to avoid errors and maintain organization.
5. Consult with Experts: Talk to lawyers or financial experts familiar with startup equity to ensure accuracy and compliance.
6. Clarify Vesting Schedules: Outline any vesting periods or cliffs for founders, employees, and investors.
Don'ts:
1. Neglect Minority Shareholders: Ensure even small shareholders are accurately represented.
2. Overcomplicate: While it's essential to be detailed, don't make your Cap Table so intricate that it's difficult for stakeholders to understand.
3. Forget Convertible Notes or SAFEs: If you've raised capital using convertible notes or SAFEs, ensure they are reflected accurately.
4. Leave Out Potential Equity: Stock options or future commitments should be factored in, even if they haven’t been executed yet.
1 Replies
Subject: Any dos/don'ts when outlining the Cap Table? Attachment: GroupRequest #9efbf1c9-cd3f-43a3-a94e-750d97f5d9c7
Are you talking about a list like this?
Do's:
1. Maintain Transparency: Always be open and honest about the numbers and percentages.
2. Stay Updated: Regularly update the Cap Table to reflect new investments, stock options, or any changes in equity ownership.
3. Detail Dilution: Reflect any dilution that may occur with new investments or rounds of funding.
4. Use Software: Consider using specialized Cap Table management software to avoid errors and maintain organization.
5. Consult with Experts: Talk to lawyers or financial experts familiar with startup equity to ensure accuracy and compliance.
6. Clarify Vesting Schedules: Outline any vesting periods or cliffs for founders, employees, and investors.
Don'ts:
1. Neglect Minority Shareholders: Ensure even small shareholders are accurately represented.
2. Overcomplicate: While it's essential to be detailed, don't make your Cap Table so intricate that it's difficult for stakeholders to understand.
3. Forget Convertible Notes or SAFEs: If you've raised capital using convertible notes or SAFEs, ensure they are reflected accurately.
4. Leave Out Potential Equity: Stock options or future commitments should be factored in, even if they haven’t been executed yet.
1 Replies