Tag: Cap Table

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Carta Alternative: Why is Eqvista the Preferred Choice for Cap Table Management?

Efficiently managing cap tables and equity is a critical responsibility for firms in equity management. With several platforms offering distinct features and dynamics, it’s important to pick one that handles equity management concerns and protects sensitive data.  You might be aware of the recent stir caused by Carta’s data breach. Some platforms’ suspected usage of … Continued

Role of Cap Table Transparency in Attracting Investors

Founders launch a company to sell something that they have developed. However, as a company grows and evolves, it must adapt its operations to make strategic decisions about its future development. Establishing and maintaining an accurate capitalization table (cap table) is one such step. Risk mitigation is crucial for investors. Therefore, as your business expands, … Continued

How should companies manage ESOP in their cap table?

ESOPs have been identified as one of the most preferred funding tools in the current era. While ESOPs were traditionally used to incentivize long-tenured senior management, recent trends show that they are now actively used as a recruiting strategy to recruit, retain, and attract talent. It encourages employee ownership by making them part owners, which … Continued

Why should you manage your cap table for an exit?

Exit plans are essential for securing a business owner’s financial future, but many only consider creating one once they are ready to leave. Business owners must consider an exit strategy but are frequently overlooked until significant changes are required. Entrepreneurs risk limiting their future options if they do not plan an exit strategy that informs … Continued

Benefits of creating a simple and smart cap table for early-stage startups

A capitalization table or cap table for early-stage startups lists your startup’s shareholders and their relative stakes in the organization. It is a spreadsheet that gives a summary of the capital structure of the business. Every investor will ask for your cap table to understand the financial system and the weight of each partner in … Continued

How to determine the ESOP pool size with a cap table?

The Employee Stock Option Plan (ESOP) Pool is the company’s equity for issuance to employees, directors, and, where permissible, advisors and consultants. Correctly sizing the ESOP pool is a fragile balancing act that most founders get wrong, a potentially costly error. The size of the employee option pool influences how much ownership can be retained … Continued

How to ensure you have the right number of investors in your cap table?

A startup’s cap table often grows faster than projected, and founders normally feel the ache of a growing cap table when it’s too late. Managing a cap table has practical ramifications for a business. Each investment the company gets requires cautious management. Founders must answer investor communications, keep them updated, and seek their signatures on … Continued

Cap table management:101 Guide for Startups

A cap table is a defining document for founders, investors, and employees. It’s the most important point of reference for understanding how ownership in your company gets divided. Who owns what percentage of the company, funding rounds, vesting schedules, and liquidation preferences are all captured clearly in the cap table. The cap table comes into … Continued

Reading a Cap Table: Guide to Keeping Track of Your Equity

With the diversification of investments, the number of shares and owners in a company can often be a bit tricky to keep track of. In order to avoid any confusion down the line, it’s important that you know how a company’s equity is divided among the shareholders. A cap table or capitalization table is a … Continued

How to Calculate Dilution in Cap Table?

A capitalization table known as a cap table is a financial spreadsheet typically used in startups to manage the equity in the company. While dilution refers to a reduction in an ownership percentage interest in the company. In essence, dilution occurs when new shares are issued, decreasing the percentage ownership of each share. In this … Continued

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