"Simplicity is king." Think of this episode of the Retail X Series podcast as your "Cap Tables 101" class. This episode features attorney Allison Cooper, Corporate Partner at Fenwick & West. Allison talks through the importance of keeping your cap table organized even at the earliest stages, how to manage dilution, best practices for option pools and more. If you're a founder who has ever had questions about your cap table, or want to plan ahead for future fundraising rounds, don't miss this informative episode.
Topics:
- How early you should be thinking about your cap table
- How much of the company founding teams should own after early fundraising rounds
- What a typical early stage cap table should have on it
- Why good recordkeeping is critical
- How dilution works and how to think about future dilution for the founders
- What standard option pools look like
- How many fundraising rounds can you have before a priced round and why this matters
- Examples of clean and messy cap tables
- When 409A valuations should be done and why they matter
- SAFEs and notes - how they typically convert in a priced round
- Common cap table mistakes for early stage founders
Music by Eino Toivanen, kongano.com
Edited by Deven Shah
Learn more at Retail X Series and follow @retailxseries on Twitter and Instagram.
To submit a pitch or to find out more about Sapna Shah, check out Red Giraffe Advisors.