Founder Equity
How Much Equity Should You Give to Your Junior Co-Founder?
Discover the complexities of equity allocation in startups, focusing on the delicate task of distributing shares among co-founders, including those in junior roles.
by Michał Kowalewski • 7 min readWhat Startup Founders Should Know About Capital Gains Tax
Explore the intricacies of capital gains tax in our comprehensive guide. Understand the difference between short-term and long-term gains, the tax rates for 2023, and the unique provisions that may apply to you, like the Qualified Small Business Stock exemption and the Alternative Minimum Tax.
by Michał Kowalewski • 7 min readWhat is a down round in startup financing?
Find out what is a down round, why they happen, what its implications are for a startup, what are the anti-dilution provisions, and what are alternative routes you can take to avoid a down round.
by Michał Kowalewski • 7 min read
What is a Cap Table?
Learn what a cap table is, and how to keep accurate records of your company's ownership, so you can easily pass due diligence when raising money for your startup.
by Stefan Nagey • 7 min readPre-Incorporation Checklist: 6 Steps Before Startup Incorporation
We cover all the important steps founders should take before incorporating their startup: choosing business entity, state of incorporation, name, board of directors, splitting equity between founders & more.
by Michał Kowalewski • 10 min readHow Your Incorporation Decision Can Save Or Cost You Millions In Taxes
When it comes to the question of C Corp vs LLC, remember QSBS.
by Jason D. Rowley • 12 min readVesting Schedules: Best Practices for Startup Founders
Vesting schedules play an important part in keeping a startup together. They’re a designed as a motivator not only for employees, but also for founders. If you have them, it sends a signal to investors, that you’re in it for the long haul.
by Greg Miaskiewicz • 7 min readWhat is Stock Dilution?
When a company authorizes new stock, the value of existing stock is reduced. Here's the why and how.
by Capbase Staff • 7 min readHow Do Startups Typically Allocate Shares?
Learn how many shares you should authorize at the outset of your company, how to price them, and how to allocate them between founders, advisors, employees and contractors.
by Capbase Staff • 7 min readWhen Do I Need a 409a Valuation?
You don't need a 409a in order to distribute co-founder shares—but you'll need one eventually.
by Capbase Staff • 7 min read5 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.
by Capbase Staff • 7 min readHow to Terminate Employees at your Startup
Learn the ins and outs of letting employees go, and what you can do to avoid potential issues later on.
by Capbase Staff • 7 min read