A Cap Table, short for Capitalization Table, is a crucial document that provides an overview of the ownership stakes and capital structure of a startup. It presents a detailed breakdown of the different classes of shares, options, warrants, and other securities held by various stakeholders.
How can I create a Cap Table for my startup?
Creating a Cap Table can be complex, especially as your startup evolves. It is advisable to seek professional guidance from legal and financial experts who specialize in startup equity management.
Can I use a template to create a Cap Table?
Yes, several Cap Table templates are available online. However, it is crucial to customize the template according to your startup's specific needs and consult professionals to ensure accuracy.
How often should I update my Cap Table?
It is essential to update your Cap Table whenever there are significant changes in ownership, investment rounds, or issuance of new securities. Regularly reviewing and updating the Cap Table ensures its accuracy and relevance.
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