Startup Funding Espresso -- How to Manage the Cap Table
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. It\u2019s 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.\xa0 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.\xa0 Include all convertible notes, warrants, and restricted stock at the time of issue so you don\u2019t lose track of them.\xa0 Keep a fully diluted version of the cap table as well.\xa0 Keep all documents such as subscription agreements, options offerings, and convertible notes in one place.\xa0 Don\u2019t delay in fixing the cap table, but fix it as you go. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of