Frequently asked questions
Learn the answers to the most asked questions about our product, founders’ matters, and more.
Frequently asked questions
Product
We built an investor CRM for you to run a tight fundraising process for your startup, including a Chrome extension for investor research. When you issue SAFEs + convertible notes on Capbase, your document room and cap table are automatically updated as you raise money.
The whole deal process runs smoothly for both the investor and the founders on Capbase - our products deals with the signature blocks, signing contracts and processes the wire transfers. When you’re done, your cap table and doc room are up to date, in real-time.
Visit our blog to learn more about fundraising:
Yes, Capbase enables you to generate the necessary legal contracts to hire employees and contractors as well as issue restricted shares and stock options as equity compensation. Additionally, thanks to our integration with Gusto and Deel partnership, you can also onboard your employees easily and set up payroll to pay your employees.
Learn more about the different types of equity compensations for employees at startups, including restricted shares awards, stock options and RSUs.
Yes. The creation of your advisory board and the distribution of shares to advisors are both fully supported by Capbase. In addition, we will generate advisory agreements for you, which means that you won't have to worry about the legal aspects of the contract.
Learn more about how to get the right startup advisors on your company's advisory board.
Yes, you can set up separate vesting schedules for each founder. Specifically, you can set a different cliff, a total vesting time, and add a double trigger acceleration for each founder’s equity grant. You can also choose to award a percentage of the founder equity up front, in which case these shares will not be subject to vesting. This is often done to reward founders who have put work into the company prior to the incorporation date.
This feature is also available when hiring employees, contractors, and advisors.
Learn more about how vesting schedules work and what are the best practices for startup founders when setting up a vesting schedule.
Yes! Even if you are already incorporated, Capbase is the best way to manage your company’s equity, contracts, and compliance. Book a time here to chat with our team about your company’s current situation so we can review your documents and import your company onto Capbase:
https://calendly.com/capbase/importing-your-company
Please be aware that there may be an onboarding fee associated with this service.
Currently, Capbase offers following integrations:
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Mercury and Brex - our integration with Mercury and Brex allows founders to sign up for a new company bank account in only a few minutes. You can connect your bank account to Capbase to accept payments for equity and investments. This integration is powered through the Plaid SDK, to securely route payments into your corporate bank account.
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Google Workspace - Google Workspace (formally known as G Suite), has been integrated into our platform. This means that you can automatically onboard and off-board team members to GMail and your GSuite subscription.
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Gusto - our integration with Gusto allows companies to onboard their employees quickly and correctly on the first day. We handle the stock options and offer letters, while Gusto handles the employee benefits administration.
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Slack - Slack allows you to onboard your new employees into your company's communication flow quickly on the first day. They will be prompted to set up an account so they can meet their new colleagues, trade their favorite GIFs, and ensure that they're on the same page from day one.
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Github - Our integration with Github onboards your newest employees by connecting their Github profile into your company's repositories to get up to speed quickly from day one.
General
We offer two pricing tiers:
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Early-stage startup: incorporation, stock issuance, board setup, cap table management, and fundraising for unpriced rounds. This tier has a price of $999/year.
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Growth-stage startup: companies that want to pursue a priced round and a 409a valuation. All previously signed fundraising documents will convert into shares for your investors, and you’ll be able to start issuing options to hire team members. This tier has a price of $4999/year.
Learn more about why Capbase was created and how we compare against other similar services.
Every user subscribed to Capbase is eligible for a series of perks that are designed to help you get your startup off the ground quickly and save founders’ time and money.
At this moment, the full list of Capbase perks include:
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For payroll: 30% off SaaS fees for the first year when using Deel for payroll & compliance
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For insurance: Save up to 25% on business insurance for your startup with Vouch
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For bookkeeping: 30% off for the first 3 months of bookkeeping with Bench
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For bookkeeping: Capbase companies get $200 off Pilot first year of sign up
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For cloud computing: As a Capbase customer, you are eligible for up to $5K in AWS credits
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For spend management: Scale faster with deposits, payments, credit cards, and spend management all in one place. Capbase customers earn up to 30,000 points ($300 value) after signing up for Brex.
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For banking: Get $250 cash when you spend $10K on your debit card within 180 days on Mercury.
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And many more, like Gsuite, Relay, Neotax, Republic, Launch, Mainstreet, Arc, Savvy, Ramp, Growrk, Embroker, Remote, Airbase, Finmark, Pry, Zendesk, ReactBricks and Simple 409a.
Yes, the Delaware incorporation filing fee is included with your Capbase subscription.
Other options help you to incorporate your company and generate some legal documentation. Capbase can do all of those things as well, but is not a silo for contracts or cap table data. We automatically update your cap table and populate your document room whenever you sign a contract or raise money, thus eliminating the error-prone manual data entry.
Other cap table vendors represent the old and error-prone way of cap table management, where you have to manually enter data from contracts to generate a visualization of cap table. By contrast, Capbase automatically updates your document room and cap table in real-time and instead of siloing your data we use it to build API integrations to save founder time and money.
Additionally, while other vendors have varying price points, Capbase's early-stage tier still only costs $999 per year while offering the same features as the highest tiers from other vendors.
Legal
Get in touch with us to begin the "Delaware Flip" process of converting your home jurisdiction's corporation to a Delaware C Corporation. You are going to need to consult a lawyer and/or an accountant in your home jurisdiction before beginning the process.
If you are unsure how to begin this process, we are able to help connect you with resources that can assist you.
Learn more about how to turn your non-US company into a Delaware C Corp through a “Delaware Flip”.
Yes, our platform will automatically generate 83(b) elections for any share purchases made by the company's founders, as well as for the early exercise of stock options by employees and advisors, or for the receipt of restricted share grants. Additionally, when founders buy their own founder shares, we file 83(b) elections on their behalf.
83(b) elections are only required for US taxpayers who are early exercising their stock. However, foreign founders may want to file an 83b if they believe it is likely that they will move to the US or become a tax resident there in the future.
Learn more about why you should file your section 83(b) election.
No and here is why:
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Because corporations need additional paperwork and a more formal structure, some founders might think LLCs are simpler than corporations. Fortunately, Capbase takes care of all the paperwork and compliance requirements involved in forming a Delaware corporation for you.
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The majority of investors prefer to invest in this kind of entity, so if you're looking to raise money from investors, you might want to consider setting up a DE C-Corp instead.
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Lawyers, prospective business partners, and potential acquirers for your startup all have a solid understanding of the Delaware General Corporation Law.
The general rule is that you should incorporate as a C-Corp in Delaware as soon as possible if you anticipate needing to do so at some point in the future. From previous experience, conversion from LLC is far more expensive than initial incorporation.
Capbase is the registered agent in the state of Delaware for companies that are built on our platform. This means that we have a physical presence on your behalf in Delaware to receive mail and make state filings on your behalf. So long as a customer is on our platform, they will not require any additional services (and suffer ongoing fees) to meet the registered agent requirements.
Alternatively, if you use a lawyer or another service to incorporate your company, you will be required to pay an annual fee to maintain compliance by having a registered agent in Delaware to accept mail on your behalf.
Unfortunately, we do not facilitate incorporation in any other state; however, there is a good reason for this:
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Delaware is a wise choice of jurisdiction if you're looking to raise outside capital for your business. Due to tax considerations, most investors prefer to invest in Delaware C Corps.
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It is simpler (and less expensive) to obtain legal counsel because the majority of startup lawyers are familiar with Delaware law. Furthermore, potential business partners and acquirers for your startup are well-versed in it.
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When properly calculated, the Delaware Franchise Tax is one of the lowest tax rates in the US. Even if a company authorizes a significant number of shares, such as 10 million shares or more, the annual franchise tax typically only amounts to a few hundred dollars.
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Delaware provides significant legal and financial benefits to businesses, including a separate corporate court system that efficiently resolves legal disputes.
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If you register somewhere else, you might later need to re-register, which can be expensive.
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Delaware is home to 70% of Fortune 500 companies. Startups and big businesses alike favor Delaware as their preferred jurisdiction.
Learn why most startups file their incorporation paperwork in Delaware.
A Delaware C Corporation is the preferred entity for (most) startup investors, and provides a strong foundation for your company. This state provides businesses with:
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Founder-friendly legislation that makes it simple for founders to register their businesses there.
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An effective corporate court system for resolving shareholder and investor conflicts.
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When calculated correctly, Delaware has one of the lowest tax rates in the United States.