{"id":1538,"date":"2020-03-07T00:00:00","date_gmt":"2020-03-07T00:00:00","guid":{"rendered":"http:\/\/www-staging.carta.com\/sg\/blog\/cap-table-template\/"},"modified":"2021-03-05T06:55:54","modified_gmt":"2021-03-05T06:55:54","slug":"cap-table-template-t","status":"publish","type":"post","link":"https:\/\/www-staging.carta.com\/sg\/blog\/cap-table-template\/","title":{"rendered":"How to create a cap table (free cap table template)"},"content":{"rendered":"<p>If you plan on issuing stock, convertible notes, warrants, or equity grants, you\u2019ll need a cap table to track everything. A <a href=\"https:\/\/www-staging.carta.com\/sg\/blog\/what-is-a-cap-table\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">cap table<\/a> is a list of all the securities your company has issued and who owns them.<\/p>\n<p>Sounds simple, but cap tables can <a href=\"https:\/\/www-staging.carta.com\/sg\/blog\/broken-cap-tables\/\">get complicated<\/a> quickly. When you raise money, create an option pool, or have a <a href=\"https:\/\/www-staging.carta.com\/sg\/liquidity\/\">liquidity event<\/a>, it can be hard to keep track of who owns how much of the company.<\/p>\n<p>It\u2019s important to have an updated and organized cap table so you:<\/p>\n<ul>\n<li>Know how to price future fundraising rounds<\/li>\n<li>Can get reasonable and accurate <a href=\"https:\/\/www-staging.carta.com\/sg\/409a\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">409A valuations<\/a><\/li>\n<li>Know the amount of shares remaining in your option pool<\/li>\n<li>Can easily tell shareholders how much they own<\/li>\n<li>Can forecast potential payouts and dilution and share with investors<\/li>\n<li>Know who needs to sign off on major company decisions<\/li>\n<\/ul>\n<p>When creating a cap table, keep in mind that there\u2019s no standard format, and there are multiple ways to build one.<\/p>\n<h2>Option #1: Build one from scratch<\/h2>\n<p>If you love Excel or don\u2019t mind getting your hands dirty, it is possible to build a cap table from scratch. However, it\u2019s not a great long-term solution, and why reinvent the wheel?<\/p>\n<h4><strong>Pro: You can build it to your specifications from the start\u00a0<\/strong><\/h4>\n<p>Cap tables can look different depending on what type of information you\u2019re trying to track and the questions you\u2019re trying to answer. By building your own cap table, you can ensure that it has the information you want and that it\u2019s tailored for your company.<\/p>\n<h4><strong>Con: It\u2019s hard to build, collaborate on, and maintain a cap table in Excel<\/strong><\/h4>\n<p>As your company grows and continues to fundraise, it\u2019ll get harder and harder to ensure your cap table is accurate and that you have a single source of truth. People on your team might have different versions, and errors can creep in with every fundraiser or option grant. You also may find it hard to keep track of all the nuances manually.<\/p>\n<h4><strong>How to get started<\/strong><\/h4>\n<p>Open up a spreadsheet and start filling it out. Remember: the goal is to show who owns what.<\/p>\n<p>It may help to have some cap table examples in front of you to model yours on (<a href=\"#jumpto\">see below for an example<\/a>). Or, we recommend avoiding this option altogether and just starting with a cap table template.<\/p>\n<h2>Option #2: Use a cap table template<\/h2>\n<p>If you\u2019re just starting out, it might make sense to start by using a cap table template. With a template, you don\u2019t have to create a cap table from scratch, and you don\u2019t have to pay for software. However, we recommend switching to software when you begin fundraising or hiring employees. Software will better scale with your company as your ownership gets more complex.<\/p>\n<h4><strong>Pro: It\u2019s a quick way to start<\/strong><\/h4>\n<p>A cap table template can give you a good starting point and save you some initial time up front. It\u2019s an easy way to ensure you include all the basic fields. Having a simple cap table in a spreadsheet from the very beginning will make transitioning to software faster and easier.<\/p>\n<h4><strong>Cons: It\u2019s hard to keep updated and may not be robust enough for your needs<\/strong><\/h4>\n<p>While cap table templates can work for early-stage companies, they don\u2019t scale. If you\u2019ve raised multiple rounds, are issuing options frequently, want to do <a href=\"https:\/\/www-staging.carta.com\/sg\/blog\/scenario-modeling\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">scenario modeling<\/a> (i.e. see what might happen in certain situations, like if you raise another round or sell the company), or want to track more than the basics, you\u2019ll likely grow out of a spreadsheet cap table quickly.<\/p>\n<p>Also, while a cap table template\u2019s basic format might be correct, it\u2019s still <a href=\"https:\/\/www-staging.carta.com\/sg\/blog\/broken-cap-tables\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">easy to make errors<\/a>\u2014especially when you\u2019re issuing securities and having multiple people make updates. Spreadsheets can\u2019t check your data real-time, and if multiple people have a copy and make updates without notifying the others, it\u2019s almost impossible to keep each copy updated. With cap table software like Carta (who also serves as a private transfer agent), your cap table updates automatically when you issue securities via the platform\u2014avoiding duplicate entries.<\/p>\n<h4 id=\"jumpto\"><strong>How to get started<\/strong><\/h4>\n<p>Download the sample cap table template we\u2019ve created. While it\u2019s a good place to start, this cap table won\u2019t scale with your company. We recommend using our template to learn what cap tables look like, then switching to cap table software and transfer agent services through Carta when your company starts to grow.<\/p>\n<figure><img loading=\"lazy\" class=\"aligncenter wp-image-1944\" src=\"https:\/\/www-staging.carta.com\/sg\/wp-content\/uploads\/sites\/9\/2019\/06\/centered.png\" alt=\"\" width=\"400\" height=\"266\" srcset=\"https:\/\/www-staging.carta.com\/sg\/wp-content\/uploads\/sites\/9\/2019\/06\/centered.png 1200w, https:\/\/www-staging.carta.com\/sg\/wp-content\/uploads\/sites\/9\/2019\/06\/centered-768x511.png 768w\" sizes=\"(max-width: 400px) 100vw, 400px\" title=\"\"><\/figure>\n<h3 style=\"text-align: center\">Download the cap table template<\/h3>\n<p>[marketo-form form_id=&#8221;5369&#8243;]<\/p>\n<h2><strong><br \/>\nOption #3: Use cap table software from the beginning<\/strong><\/h2>\n<p>While it may seem easy to track who owns what when you\u2019re small, it\u2019s essential to use cap table software as soon as you start raising money. Software can scale with you and stay updated automatically as you get new <a href=\"https:\/\/www-staging.carta.com\/sg\/blog\/what-is-a-409a-valuation\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">409As<\/a>, issue options, offer liquidity, and more.<\/p>\n<p>While you may have to pay to use it, it could end up saving you time (and money) in the long run.<\/p>\n<h4><strong>Pro: It\u2019s the easiest way to keep your cap table updated<\/strong><\/h4>\n<p>Since many transactions, like fundraising and issuing stock, affect and are often based on your cap table, it\u2019s important to have one single source of truth. With cap table software, you no longer have to worry about sending the latest version to stakeholders whenever you change something. They can simply log in whenever they want.<\/p>\n<p>If you use advanced cap table software through <a href=\"https:\/\/www-staging.carta.com\/sg\/transfer-agent\/\">transfer agents<\/a>, like Carta, transactions will automatically update your cap table. This saves you time when issuing electronic securities, getting 409A valuations, and keeping track of rules like the <a href=\"https:\/\/support.carta.com\/sg\/article\/132-100k-rule\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">$100K limit<\/a> and <a href=\"https:\/\/www-staging.carta.com\/sg\/blog\/rule-144\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">SEC Rule 144<\/a>.<\/p>\n<h4><strong>Cons: It costs money<\/strong><\/h4>\n<p>While <a href=\"https:\/\/www-staging.carta.com\/sg\/cap-table\/\">cap table software<\/a> might seem like a nice-to-have, the time and money you save later, like during a fundraising, typically makes up for the cost.<\/p>\n<p>Plus, with Carta, regular <a href=\"https:\/\/www-staging.carta.com\/sg\/409a\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">409As<\/a> are baked into all our plans. So if you\u2019re planning on issuing stock options for the first time, just raised a financing round, or it\u2019s been 12 months since your last <a href=\"https:\/\/www-staging.carta.com\/sg\/blog\/409a-valuations-for-founders\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">valuation<\/a>, you can get cap table management software and an audit-ready 409A for one low price.<\/p>\n<h4><strong>How to get started<\/strong><\/h4>\n<p>We\u2019d love to discuss how Carta can help streamline how you manage equity\u2014<a href=\"https:\/\/www-staging.carta.com\/sg\/pricing\/?utm_source=blog&amp;utm_medium=captabletemplate\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">learn more about our features<\/a>, <a href=\"https:\/\/www-staging.carta.com\/sg\/tour\/video\/?utm_source=blog&amp;utm_medium=captabletemplate\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">take a video tour<\/a>, or <a href=\"https:\/\/www-staging.carta.com\/sg\/requestdemo\/?utm_source=blog&amp;utm_medium=captabletemplate\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">request a demo<\/a> today.<\/p>\n<p>If you\u2019re an early-stage founder ready to start on Carta now, we recommend our <a href=\"https:\/\/www-staging.carta.com\/sg\/pricing\/?utm_source=blog&amp;utm_medium=captabletemplate\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Starter plan<\/a>, which includes a 409A valuation, too. Or, if you\u2019re interested in <a href=\"https:\/\/www-staging.carta.com\/sg\/blog\/carta-launch-open-beta\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Launch<\/a>, our pre-seed plan available for free through our law firm partners (for companies with less than 25 stakeholders or $1M raised), <a href=\"mailto:partners@carta.com\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">reach out to our partnerships team<\/a> or your lawyer.<\/p>\n<h6 style=\"text-align: center\">JOIN CARTA<\/h6>\n<h2 style=\"text-align: center\">Simplify cap table management with Carta<\/h2>\n<p style=\"text-align: center\"><a href=\"https:\/\/www-staging.carta.com\/sg\/requestdemo\/?organization=Private%20Market\"><button class=\"Button\" type=\"button\">GET A DEMO<\/button><\/a> <a href=\"https:\/\/www-staging.carta.com\/sg\/tour\/video\/\"><button class=\" Button\" type=\"button\">TAKE A VIDEO TOUR<\/button><\/a><\/p>\n<p class=\"has-small-font-size\">DISCLOSURE: This communication is on behalf of eShares Inc., d\/b\/a Carta Inc. (&#8220;Carta&#8221;).\u00a0 This communication is for informational purposes only, and contains general information only.\u00a0 Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services.\u00a0 This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests.\u00a0 Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s no standard cap table format, and there are multiple ways to create one. We&#8217;ll walk you through a few ways to get started and include a free cap table template you can download.<\/p>\n","protected":false},"author":66,"featured_media":2036,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[24],"tags":[26,22,100],"acf":[],"_links":{"self":[{"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/posts\/1538"}],"collection":[{"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/comments?post=1538"}],"version-history":[{"count":0,"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/posts\/1538\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/media\/2036"}],"wp:attachment":[{"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/media?parent=1538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/categories?post=1538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www-staging.carta.com\/sg\/wp-json\/wp\/v2\/tags?post=1538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}