Instructor for this course
more

This course provides a basic overview of equity concepts in a start-up company, focusing on corporations, and in particular, technology corporations. 

We start with a brief overview of equity, including a discussion of ownership vs. control in a corporation.  From there, we will look at differences between common stock and preferred stock.  After that, we explore some of the rights to acquire equity, including stock options, warrants and convertible notes.  After that, we look at company rights to re-acquire its outstanding stock, including rights of repurchase and redemption rights.  Then we will look at rights that track to equity, but are not rights to acquire equity, such as phantom units and stock appreciation rights.

The course provides examples of authorizing common and preferred stock in the Charter, and the development of a capitalization table.  We will work through several examples of capitalization tables, incorporating common stock, stock options, preferred stock series, and warrants, and determine percent holdings by class, by outstanding stock, and by fully-diluted stock.

Course Series

This course is included in the following series:

10 CoursesFinance for Entrepreneurs

  1. Start-up Equity and Cap Table Basics
  2. Understanding Performance-Based Equity Awards
  3. Accounting 101: How To Do Basic Accounting In One Hour
  4. Learn Finance Principles in 1 Hour
  5. Financial Modeling Using Excel
  6. The Evolution of a Great Spreadsheet Report - How to Effectively Present Numbers in the Business World
  7. Creating a Winning Pitch for Venture Capital Investors
  8. Venture Capital Valuation Analysis Method
  9. Enterprise Risk Management 101
  10. The IPO Preparation Process - Preparing a Company to Access the Public Markets

Learning Objectives

  • Identify the differences between common and preferred stock.
  • Identify the different rights to acquire stock in a corporation.
  • Discover how to authorize stock in the Charter, and recognize how to determine the authorized amounts required.
  • Explore how to build a capitalization table and depict percent ownership.

 

 

19 Reviews (53 ratings)Reviews

5
Anonymous Author
A good beginning introduction to startup equity. Great for entrepreneurs, non-financial managers or those just starting out on their careers on the executive track. Also, if you're a service provider to startups, this course would help you to understand how startups are offering to compensate you.
4
Anonymous Author
The scenarios slides and presentations makes it easier to understand how stocks are being calculated. It is good for startups to have a look at this to understand how stocks work.
5
Anonymous Author
Very clear and effective instructor. In addition to finance professionals, this course is valuable for all business professionals
5
Anonymous Author
Really concise overview focusing on the most common types/traits rather than distracting exceptions
5
Member's Profile
Very thorough and good examples. The key summaries at the end of each section was very helpful.
5
Member's Profile
Very knowledgeable instructor. Course was a good introduction to the types of equity.
5
Member's Profile
This was my first exposure to Cap tables and set a good basic foundation of the topic
5
Member's Profile
Instructor was very knowledgable and presented in a professional manner.
5
Anonymous Author
Very good, one of the best overall review of the subject matter.
4
Member's Profile
A lot of material. but solid information - makes you think.
5
Member's Profile
Great course! Covered topics not normally found elsewhere.
4
Member's Profile
Thank you very much for this valuable course.
3
Anonymous Author
definitely basic but a good overview
5
Member's Profile
Good very basic overview of equity.
5
Member's Profile
clear explanations and progression
5
Member's Profile
Great work on a complex topic
5
Member's Profile
very clear and concise.
5
Anonymous Author
good course
5
Anonymous Author
n/a

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 ext. 106, or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
Startup Equity Basics
  11:07Types of Stock
  13:13Rights to Acquire Equity
  11:39Contingent and Non-Equity
  5:23Counting Equity - Authorized Stock
  8:37Counting Equity - Outstanding Stock
CONCLUSION
  14:41Capitalization Complications
Continuous Play
  1:05:34Start-up Equity and Cap Table Basics
SUPPORTING MATERIALS
  PDFSlides: Startup Equity Basics
  PDFStartup Equity Basics Glossary/Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM