What You Need to Know About Cap Table Management
KoreConX
More than a simple spreadsheet, a cap table (short for capitalization table) records detailed data regarding the equity owned by shareholders. When it comes to raising capital, your cap table will help you make sound decisions regarding your offering. So, what exactly is cap table management?
A clear and well-managed cap table paints a detailed picture of exactly who owns what in the company. Whether a founder is looking to raise additional capital or offer incentives to employees, a correctly-managed cap table will show the exact breakdown of shares, digital securities, options, warrants, loans, SAFE, Debenture, etc. This information enables founders to understand how equity distribution is impacted by business decisions.
Proper cap table management ensures that all transactions are accounted for and that potential investors are easily able to see the equity structure during funding rounds. Founders are also able to better negotiate the terms of a deal when they have the entire pictur...more
Messy Captable? Yo Mama.
CrowdInvesting doesn't mess up your captable.
The only down side of having your mom, 8 auntie, 30 cousins and 3000 second cousins or customers on your captable is VC hate it when they can't dilute you down to an employee. That is the real reason VCs don't want a quote-unquote "messy" crowdfunding captable. It makes it harder for them to push a co-founder on you and claim 3 board seats so that in 18 months they can push you out of your company. Typically VCs reserve this treatment for women Founders but alas, greed is almost free of sexism...almost.
However, I digress. Because seriously, Sharks are sharks and you've sorta gotta expect that kind of behavior from an industry and practitioners who call themselves Sharks, right? I mean the only ones you've really got to keep an eye out for are the "Angels''. Swear to g-d the best trick the Devil ever did was pivot into investing into early stage startups. What's one soul when you can claim the upside of an entire industry? Know what I...more
- 1
