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...

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...