Cap Table and Equity Compensation Learning Center

Comprehensive guides on cap tables, equity compensation, stock options, preferred stock, SAFEs, and startup valuation. Learn everything from 409A valuations to exit waterfalls.

Cap Table and Equity Compensation Learning Center

Qualified Small Business Stock (QSBS): The Complete Section 1202 Guide

Waterfall Analysis: How to Calculate Distribution Waterfalls

Class A vs Class B Shares: What's Actually Different (Quick Answer + Examples)

All articles

SAFE vs Convertible Note: Differences and When to Use Each

Pre-Money vs Post-Money Valuation: Formula and Examples

Startup Dilution Explained: How Much Per Round, With Examples

409A Valuation: When You Need One, Cost & Process

Cap Table: Structure, Calculations & How to Model One

What Is Common Stock? Definition & Rights

Incentive Stock Options (ISO): Tax, AMT & Rules

IRR (Internal Rate of Return): Formula & Examples

MOIC: Multiple on Invested Capital Formula & Meaning

Preferred Stock vs Common Stock: Key Differences

Restricted Stock Units (RSUs): How They Work & Taxes

What Does Vested Mean? Vesting Schedules Explained

Cliff Vesting: How a Vesting Cliff Works (with Worked Examples)

Convertible Note: How It Works, When to Use One, How It Converts at the Next Round

Cumulative Preferred Stock: How Cumulative Dividends Work (with Examples)

Price Per Share Formula: How to Calculate It

Warrants vs Options: Key Differences for Startup Equity (with Examples)

Carried Interest in Private Equity: How the 20% Profit Share Actually Works

What Is a Management Carve-Out? Plans, Triggers & Math Examples

Cashless Exercise: Stock Option Transaction Methods

Conversion Ratio: How to Calculate It (With Worked Examples)

Convertible Preferred Returns in a Waterfall Analysis: How the Math Works

Dividends in Arrears: How They Work, How to Calculate Them

How to Choose an Equity Management Platform: A Buyer's Checklist

European vs American Waterfall: Distribution Models

Financial Modeling for Startups: Structure and Methods

Full Ratchet Anti-Dilution: Protection and Mechanics

Liquidation Preference: Rights and Mechanics

Management Incentive Plan: Structure and Components

Participating Preferred Stock: How the 'Double-Dip' Liquidation Works (With Examples)

Post-Money SAFE: How It Works and Why Founders Bear All the Dilution

Preferred Stock Voting Rights: What Preferred Holders Can (and Can't) Vote On

Pro Rata Distribution: Definition and Applications

SAFE Agreement Explained: How Simple Agreements for Future Equity Work

Startup Valuation Methods: Approaches and Applications

Uncapped SAFE: What It Means & How It Converts (with MFN)

Waterfall Chart in Excel: Step-by-Step Creation