Tag Archives: cap table.

Don’t gamble away the success of your company by failing to keep its stock ownership in good shape. Launching a startup certainly has its risks and challenges, but it should not be a roll of the dice at the craps table (or something worse). As an Entrepreneur, you will need to understand your company’s equity ownership and…

Now that you’re done incorporating, it is time to get down to business.

Tackle these 13 tasks after incorporation and keep your company on track and pointed in the right direction.

If you first raised a seed round with convertible debt and now are raising capital , then you need to model the financing and understand how the terms will affect your company’s equity capitalization table and resulting stock ownership. We have created an equity financing model for you to download.

Many equity investors will want to understand the complete startup equity ownership of your company, so that they can determine what their eventual ownership stake may become after the their investments. Easy as pie? Startup equity ownership can get complicated after a few financing rounds. The explanations and key concepts should provide a solid foundation for you to talk the talk.

Entrepreneur’s Question: “I don’t understand my stock ownership and how much of the company I own. I thought that I had 25% of the company, but my shares equal less than 10% of the authorized shares. Could you explain who owns what percentage of the company?”