When you assign demographic information to your shareholders you can view a demographic analysis of your cap table in the Demographics tab.
Find this Demographics tab by clicking on the Shareholders icon in the side menu, or click here.
We would love to hear your feedback on this feature. Please email us at firstname.lastname@example.org
All securities offerings have to be registered (for example via IPO) or be exempt by meeting certain rules. Giving your employees stock options is a securities offering.
Rule 701 is one of the federal exemptions from registration requirements. It covers equity awards to individuals offering services to the company, like employees. Captable.io helps you track your equity awards with Rule 701 exemption, and help you stay exempt with an automatic assessment.
If you are over the threshold, you need to provide additional disclosures to all investors. Materials include risk factors, GAAP financial statements, etc. If they’re not provided, Rule 701 exemption is lost for the entire offering.
The risks of getting it wrong and violating the Securities Act of 1933 are high. See this SEC enforcement action. Review Captable.io’s warnings and consult details with your lawyer.