What is a startup cap table and how can a lawyer assist with a startup cap table?

A startup cap table is a spreadsheet that outlines the ownership structure of a startup company, including the shares issued to founders, employees, and investors, as well as any options, warrants, or convertible securities.

A lawyer can assist with a startup cap table in several ways, including:

  1. Creating the cap table: A lawyer can help a startup company create a cap table that accurately reflects the company’s ownership structure and complies with legal requirements.
  2. Managing equity issuances: A lawyer can help a startup company manage equity issuances, including stock options, restricted stock units, and other forms of equity-based compensation. This may include drafting equity incentive plans, option agreements, and other related documents.
  3. Advising on legal issues: A lawyer can advise a startup company on legal issues related to equity issuances, such as securities laws, tax implications, and shareholder agreements.
  4. Conducting due diligence: A lawyer can conduct due diligence on a startup’s cap table, ensuring that all equity issuances have been properly documented and that there are no discrepancies or legal issues.
  5. Negotiating with investors: A lawyer can assist a startup company in negotiating with investors on equity terms and conditions, ensuring that the company’s interests are protected and that the cap table is structured in a way that is favorable to the company.

Overall, a lawyer can play a critical role in helping a startup company manage its cap table, ensuring that the company is in compliance with legal requirements and that its interests are protected. If you have any questions please contact us at info@falconlawyers.ca or 1-877-892-7778.

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