As you continue to grow, it is important to keep your cap table organized. Bringing on a cap table management software will help you track changes more efficiently, and be prepared to answer employee or investor questions at any given time. Carta is the service we see most commonly used (and we have a discount with them!), and Pulley and Captable.io are alternative solutions.
A 409A is used to determine the fair market value of your company’s common stock and usually is determined by a third-party valuation provider. The 409A will set the strike price for options issued to employees, contractors, advisors, and anyone else who gets common stock. If you want to understand the 409A further, Carta wrote this helpful blog post.
All private companies must complete a 409A annually OR anytime a material event occurs i.e. a round of financing.
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