Wed, 23 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Startups raising funding should keep track of their cap table which shows who has ownership in the business.
If you have one, make sure to keep it up to date.
If you don’t have one, then here are the steps to set up your cap table.
Identify all the founders and equity owners in the company.
Include anyone who has stock options or warrants.
Keep track of any special agreements you have with the founders, partners, or investors.
For each person or entity on the cap table, list the class of stock, price paid for it, and how much of that stock they own.
Calculate the total amount of shares and the money paid for it.
To create a fully diluted cap table, include all options and warrants even if they are not yet vested.
Also, track all convertible notes and SAFE notes that could convert into equity in the future.
During the fundraise, investors will want to see your cap table so they know who owns what and who they are investing with.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_How_to_setup_the_cap_table.mp3
Category:general -- posted at: 7:00am CST