How to tell story of your startup’s Cap Table
<p>Asa founder, you’ve probably been told to read up on cap tables. And yet, a cap table is really nothing more than a spreadsheet that shows who owns how much of your company. Each row may list a shareholder, their ownership percentage, the number of shares that percentage represents, the value of each share and a total value. How hard can it be?</p>
<p>As it turns out, it can be plenty hard (though it doesn’t have to be).</p>
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<p><strong><em>“Cap tables are part of every successful founder’s life. They may seem simple at first, but can get complicated quickly. Cap tables reveal a lot about you and your company, including who holds the reins, who your trusted partners are and what kind of business chops you have. Getting them right — and correcting mistakes early — can save big headaches down the road and help impress potential financial partners and key hires. We talked to VCs and other experts for advice on getting these basics down.” — Chris</em></strong></p>
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<p><img alt="" src="https://miro.medium.com/v2/resize:fit:700/0*Jh90q_Fogtzsb7CO" style="height:430px; width:700px" /></p>
<p>Cap tables can be hard because your ownership structure will grow in complexity as your business gains traction. New investors come in, diluting the stakes of existing shareholders. You recruit employees, each with different starting dates, different option grants, vesting schedules and exercise dates. Some will no doubt leave before they’re fully vested. Your cap table must keep track of all this in precise detail along with materials like contact information and legal documents for all shareholders.</p>
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