How to Manage the Cap Table

How to Manage the Cap Table

May 19, 2021 by investor

It’s important to manage your cap table as you go. Fixing it later will cost you time and money.

Here are some key points for managing your cap table:

Consider setting up your cap table with a provider that keeps track of all transactions in one place.

Founders should take ownership of the cap table and make sure it includes all transactions.

Create an options plan to provide an incentive to employees. This will reduce your need to use cash for compensation.

Keep the cap table up-to-date with the current share price and ownership stakes. 

Include all transactions including stock sales and options exercised so you are up to date.

Track the vesting schedules and update the cap table with these as well. 

Include all convertible notes, warrants, and restricted stock at the time of issue so you don’t lose track of them. 

Keep a fully diluted version of the cap table as well. 

Keep all documents such as subscription agreements, options offerings, and convertible notes in one place. 

Don’t delay in fixing the cap table, but fix it as you go.


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