In this AlphaTakes video, paralegal Macy Stoneback provides a brief summary of the capitalization table (“cap table”) for an emerging technology.
Here are the key takeaways from this video:
(1) The cap table shows the outstanding equity of the company as of a given date, broken down by shareholder and equity type.
(2) Officers refer to cap tables often when considering issuing equity to employees, advisors, and others.
(3) A pro forma cap table can be prepared to see how shareholders and option holders are affected by actions like adding shares to the stock incentive pool, raising a round of financing
by AlphaTech |