As you probably know, your company’s equity is the ownership of your startup. You use a captable, the table outlining the distribution of a startup’s shares — but it can’t be done just any old way! If it’s not handled correctly, it can be a problem for your startup’s future. Making mistakes when you distribute equity can really screw up your startup in the long term.
For an inexperienced founder, it might seem like the shares of a newly created company have almost no value. Even if that’s the case, it does not mean your shares will always be without value.
Your shares do have value, even if
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