Overview of Cap Tables

1. Introduction to Capitalization A company’s “capitalization” is, in one sense of the word, a breakdown of its ownership structure, in terms of equity and convertible debt. A new venture with just one founder, and no other parties involved yet, has the simplest...

Private Placements: A Primer

A private equity offering or “private placement” of securities is the process of offering and selling securities to prospective investors without first registering the securities with the U.S. Securities and Exchange Commission (the “SEC”). In a private placement, a...

Non-Equity Incentive Plans

We previously discussed the benefits of equity incentives. When it comes to compensating a start-up’s key people, equity incentives are often the best way to align interests with the founders.  Sometimes, however, non-equity incentives can be useful. Non-equity...