Sitemaps
Discussions
DiscussionsQuestionsExperts

Topics

View All Posts

Ask an Expert

Any dos/don'ts when outlining the Cap Table?


Kathee Chimowitzposted a year ago

Upgrade to join the discussion.

Already a member? Login

Upgrade to Unlock

Ed Kang

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.

Replya year ago

1 Replies

Wil Schroter

happy to be helpful here but what specifically are you concerned about?