Setting Up a Complex Cap Table
- 01:17
Demonstrates how to set up a complex cap table, calculating the number of shares to be offered to each investment round for their desired ownership stake.
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Glossary
Complex Cap TableTranscript
We're now gonna set up a more complex cap table.
Cap tables typically show more than just the ownership percentages of the various types of investors from different capital rounds. Although cap tables come in all shapes and sizes, the components that cap tables typically include are, one, the names of all major shareholders in the company, and how many shares of each class they own. Two, all of the cluster of stock and the price per share. Three, the total capital raised and the total share count. And four, the current fully diluted ownership, which includes the number of options, whether issued or non-issue, vested or non vested. This does bring in a lot more complexity around the numbers of shares to be issued in each instance. It's worth noting that the complexity around the number of shares to be issued to the ESOP means that some VC firms will make use of external systems and advisors to calculate the correct number of shares to issue to the ESOP.