Cap Tables
What is Stock Dilution?
When a company authorizes new stock, the value of existing stock is reduced. Here's the why and how.
5 Cap Table Mistakes to Avoid
Make sure you avoid the most common mistakes founders make when setting up their cap tables. Some of these issues can create major problem later on, including turning off potential investors.
The Ultimate Guide to Cap Tables for Startup Founders
Most founders have little clue about how cap tables work when they start their first startup. Keeping accurate records of your cap table is essential for startup founders if they plan on raising capital from VCs or selling the company.
How Startup Equity Works: Common and Preferred Share Classes
Startups typically issue common shares to founders, employees, advisors and consultants; they issue preferred shares to investors as part of venture financing rounds The preferred class of stock in a startup is typically subdivided into series, each representing a different round of financing, like Series A, Series B, and so on.
Par Value & FMV: How To Price Your Startup's Common Shares
Just getting your startup incorporated? Find out how to price your company's common shares and learn how the fair market value (FMV) of common shares changes as your company grows.
How Does a Startup Option Pool Work?
Learn how startup stock option pools work and how to use equity compensation to recruit key employees to join your team.