After deciding your new business venture seems worth pursuing, you will have quite a few decisions to make regarding incorporating your new entity. Much of that relates to the quantity and type of equity you will create. But it goes way beyond that and also includes decisions about stock option pools, equity splits and a whole new vocabulary that might not be familiar.
Most attributes of a company’s equity is reflected on a ledger known as a “capitalization table” (aka – cap table). This article will expose you to many concepts by walking through the evolution of a case study formation and associated build up of a cap table.
Note that a majority of the concepts covered in this article are also covered in the next video for this lesson.
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