What should a cap table include?

In general, the capitalization table is an intricate breakdown of a company’s shareholders’ equity. Cap tables often include all of a company’s equity ownership capital, such as common equity shares, preferred equity shares, warrants, and convertible equity.

Can an LLC have a cap table?

LLCs can use cap tables for a number of reasons, including: Raising money from investors, as the cap table shows how the company is structured as well as past financing rounds. Often, cap tables can answer investors’ questions and let them see how their investments will impact other investors.

How do you fill out a capitalization table?

How to Make a Cap Table

1. Authorized shares: Number of shares the company is allowed to issue.
2. Outstanding shares: Number of shares held by all shareholders in the company.
3. Unissued Shares: Number of shares that have not been issued.
4. Shares reserved for stock option plan: Unissued shares reserved for future hires.

What does a good cap table look like?

Keep it Organized and Simple. So your cap table should really be a collection of ledgers that includes the following at a minimum: Stockholder name as it appears on the security instrument (e.g., stock certificate, promissory note) Date of issuance. Date of disposition if the security is no longer outstanding.

Are Cap tables public?

There’s no legal requirement to share your cap table with employees, however companies typically give senior management (e.g. CFO, COO, CTO) visibility. However, cap table visibility for employee owners is a little bit like making salaries public.

Do you include options in a cap table?

The cap table should include an option ledger that records additional information, such as grant date, exercise price, vesting schedule, and the number of shares granted, vested, exercised, exercisable, cancelled and outstanding.

What is the capitalization table in an LLC?

A capitalization table (cap table) identifies shareholders and their percentage equity ownership in the company. A cap table will also reflect change in ownership and value over time, and may include shares for future employees.

What is a business cap table?

A capitalization table (or “cap table”) is a list of all the securities your company has issued and who owns them. Securities include stock, convertible notes, warrants, and equity grants.

What is a cap table template?

A capitalization table, or “cap table” for short, is a list of a company’s securities (common stock, preferred stock, convertible notes, SAFEs, options, warrants, etc.) and who owns those securities.

What is a fully diluted cap table?

The fully diluted cap table is a version of the cap table with all the outstanding shares for each security along with the total shares for each convertible security when exercised. Convertible securities would include convertible notes, stock options, warrants, and other shares that can be exercised.

What do investors look for in a cap table?

The cap table should show the company’s overall capital structure at a glance, as well as detailed ownership information for each class and series of stock outstanding (see an example at the end of this article). Most importantly, it should always be accurate and up to date.

Can I ask for cap table?

There’s no legal requirement to share your cap table with employees, however companies typically give senior management (e.g. CFO, COO, CTO) visibility. If your employees have a stake in the business through shares or options, it makes sense to give them a degree of cap table visibility.

What is an LLC cap table and how to create one?

Generally, most LLC cap tables are created after a few rounds of financing, once the sources of funding become complex. This way, the company can keep track of potential funding sources, initial public offerings, and any upcoming mergers or acquisitions.

Can a startup company have a convertible note?

Sometimes, a startup is a limited liability company, not a C-corporation. A limited liability company can use a convertible note, since that kind of note is a debt instrument. On the other hand, SAFE notes require C-Corp status because the investment is noted on a capitalization table just like stock options.

What should be included in a cap table?

The cap table should be designed in a simple and organized layout that clearly shows who owns certain shares and the number of outstanding shares. The most common structure is to list the name of investors/security owners on the Y-axis, while the type of securities is listed on the X-axis.

What should be included in the capitalization table of a company?

A separate table in the capitalization table should include the following: Names of shareholders: The names of shareholders who have bought shares in the company. Shares owned by each shareholder: The number of shares held by each shareholder. Stock options: Stock options owned by each shareholder.