Capitalization Table Template and tips to make it awesome
A Capitalisation Table Template is a template that will help you to list all the company’s securities. The template is usually using a spreadsheet for a startup company or early-stage venture that will list all the company’s securities like common shares, preferred shares, warrants, and so forth.
What is the role of a Capitalisation Table Template for the company?
You probably know that this Capitalisation Table Template format will indicate each investor’s percentage of ownership in the company, the value of the securities, and also dilution over time. This template is usually created first before other company documents in the early stage of a startup or venture.
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How to create a Capitalisation Table Template
Since this Capitalisation Table Template document is a spreadsheet for a startup company or early-stage venture, it will list all the company’s security. In this idea, your template should be designed in a simple and organized layout that shows clearly who owns certain shares and the number of outstanding shares.
The most common for structure this template is to list the name of the investor/ security owner on the Y-axis when the type of securities is listed on the X-axis. You also need to follow some ideas below to make your Capitalisation Table Template design impressive.
- You have to familiarize yourself with its basic elements and formats because this template has many different elements and format
- You need to list the equity stakes in a company including the common stock, preferred stocks, and also stock options
- You also have to recognize the importance of executive alignment so that it will solve the business issues for you
- Remember to evaluate and implement tools to help you manage it as well
Tips to arrange a Capitalisation Table Template
Besides, you also need some tips to arrange this Capitalisation Table Template document. The tips will make the template easily understanding and it also will make the recipient getting the point about your template as well. Here are some of the tips to follow when you are arranging this template.
- You have to determine and delegate the ownership of the cap table because it will help you to stay on top of critical changes and minimize the errors
- Remember to decide how much information to share with investors because this letter will allow the investor to calculate the ownership position for internal tracking and audit purposes
- Your letter will be great if you can choose how much to share with employees. This idea will be the key to keep comfortable with in terms of employer transparency
- You also need to provide information that will decrease the morale of some of the founders
Remember to be proactive with your Capitalisation Table Template
Finally, you only need to be proactive on your Capitalisation Table Template. This idea is important because it will be well-managed, well-understood, and up-to-date. The management process will not be just another headache. Therefore, you need to put the correct process and legal team in place efficiently to make your capitalization table great.
