Purpose
Initial equity records the opening founder or shareholder structure from which later financing events build.
Record the opening structure
Company cap table → Add contract or initial equity → Equity
- Confirm the incorporation date, authorized shares, share classes, and founding stakeholders from the legal records.
- Add each founder or initial shareholder to the equity contract.
- Enter quantities and rights using one consistent ownership basis.
- Review totals against the incorporation documents before issuing.
Do not force totals to match by inventing stakeholders or shares. Resolve discrepancies against the company’s legal records before issuance.
Verify the opening position
- Every founder or initial holder maps to the correct legal identity.
- Share quantities reconcile to the approved opening structure.
- Classes and economic rights match the source documents.
- The company total uses the intended authorized and issued basis.
- Dates do not conflict with later rounds or transfers.
Correct problems before later rounds
Resolve an incorrect founder identity, class, quantity, or date before building later financing history. Once subsequent rounds depend on the opening position, a correction can affect every later ownership percentage and must follow the controlled recovery path.