A capitalization table, also known as a cap table, is a list of all the shares, stocks, and securities within a company and who owns them. The securities also include equity grants, convertible notes, and warrants. Most established companies need a cap table because the table helps them see who owns what in a company, when they invested, and how much they invested. The data from the cap table software also helps businesses when it’s time to find more funding sources. Here are three great reasons why you should have your own cap table.
It allows you to give shareholders and investors stocks electronically.
Giving your shareholders online certificates and documents will help you save money, send what is needed in seconds, and reduce your carbon footprint on the environment.
It helps you plan for your next financializing round.
By looking at your past rounds and modeling out new ones, you’ll be able to make better decisions for yourself, your team, and your whole company.
It gives investors access to their holdings.
A cap table software will give you the opportunity to share up to date insights and updates on their investments, and most importantly, you’ll never have to search for equity records ever again.
Are you ready to get your business finances in order? EquityTrack is a stock transfer agent and cap table software that helps thousands of people every day effectively raise money and manage their investors. We also help with consultations, helping startups go public, and crowdfunding portal integrations.
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