Bill Reichert explains that the details of the Shareholders Equity section of your Balance Sheet are shown in your Capitalization Table, which is maintained as a separate report. The “Cap Table” shows how much of the company each shareholder owns, and in what form—common stock, preferred stock, options, or warrants. Investors will want to look at your cap table to understand how you have distributed your common stock and how you have raised investment capital.
THIS VIDEO CAN HELP ANSWER:
How have I raised money, and who owns the company?
What's the difference between an option and a warrant?
What's the difference between common stock and preferred stock? Who should have what?
What's a convertible note, and when should I use it?
What do investors want to know about my capitalization table?
ABOUT THE KAUFFMAN FOUNDERS SCHOOL
Visit the website: [http://bit.ly/1EW2br7]
The Kauffman Founders School presents a powerful curriculum for entrepreneurs who wish to learn anywhere, anytime. The online education platform features experts presenting lectures in series modules designed to give Founders a rich learning experience, while also engaging them in lessons that will make a difference in their business today, tomorrow, and in the future.
The Kauffman Founders School series modules include Powerful Presentations, Intellectual Property, Founder's Dilemmas, Entrepreneurial Selling, Entrepreneurial Marketing, Surviving the Entrepreneurial Life, Startups, and much more.
© Ewing Marion Kauffman Foundation.