What are the main requirements for a Carta alternative?

[andrasbacsai]

Here, we should talk about what we need to have an MVP.

If you know all the jargon (cap tables, company valuation, fund administration, equity, etc.), please share your thoughts!

I'm unfamiliar with these terms in depth so that any help would be appreciated.

[JustMrMendez]

I'm going to use LLMs to help me out, I believe we should start with Cap Tables

1. Cap Tables Technical Plan

   • Ownership Structure Module

     • Functionality: Model to represent percentage ownership.
     • Database Schema: Tables for shareholders, share types (e.g., common, preferred), and ownership percentage.
     • Calculation Logic: Algorithms to calculate equity dilution after funding rounds or new equity grants.
     • Jargon Explained:
       • Equity Dilution: Reduction in existing shareholders' ownership percentage due to new shares issuance.

   • Shareholder Details Management

     • Functionality: System to record and update shareholder information.
     • Database Schema: Tables for storing shareholder names, contact information, and associated share classes.
     • User Interface: Forms for entering and editing shareholder data.
     • Jargon Explained:
       • Share Classes: Types of stock (e.g., common, preferred) with different rights and privileges.

   • Vesting Schedules Tracking

     • Functionality: Mechanism to track vesting periods for stock options.
     • Database Schema: Tables for vesting schedules, including start date, end date, and vesting milestones.
     • Business Logic: Code to handle vesting rules (e.g., cliff periods, monthly vesting) and option expiration.
     • Jargon Explained:
       • Vesting Period: The time period over which stock options granted to employees become exercisable.
       • Cliff Period: Initial period in which no vesting occurs; followed by gradual vesting.