Capitalization Table
The Basics of a Capitalization Table | AlphaTech Counsel, S.C.
- Calculating
- Investors put some money in, and request some percent of the company after that.
- Based on these ratio, issue new shares to the investor.
- Existing holders’ shares are diluted
- Shares for founders, and a vesting plan
- “Simple Agreement for Future Equity” (= SAFE) by Y Combinator
- Valuation Cap — convert investment to equity at this cap, if the company is valued more than the cap.
- Most favored nation treatment for investor
- A discount — convert investment into shares at a discounted rate.