So you've built or are building your team and are trying to figure out how to divvy out all that stock. Our first tip? Don't wait too long.
When to make an equity plan
Unless you're a self-financed or bootstrapped solo founder, this can be delayed until you bring on a partner or fundraise.
What is equity management
Equity management (also known as cap table management) is the system for managing ownership stakes, types of shares, and option pools. Founders, investors, or employees can have ownership, including equity dilution and the total value of equity. A cap table helps understand who owns what, at each stage of the business. Most startups create a voting agreement for common and preferred shares, which determines who needs to vote on company decisions.
The leader in the equity management space is Carta, with a slightly cheaper solution being
. Both of these companies will fully manage your cap table, send certificates to investors, help you issue options to employees, run annual 409(a) valuations, and model scenarios.