A Cap Table holds information that every founder, investor, and equity-privileged employee would need to understand the stakes of ownership of a company. It enlists all the company’s securities such as common shares, preferred shares, who owns them, and the prices paid by the shareholders for those securities. Also, a Cap Table indicates each shareholder’s percentage of ownership in the company, the value of their securities, and dilution over time.
Startups can manage their Cap Tables on spreadsheets at a very early stage, but as complexities increase, Cap Table management can become a critical pain point. Finally, after a few years of growth and a few rounds of financing, many investors enter the cap table. This is where MyStartupEquity comes in and simplifies cap table management.
Cap Table Management on MyStartupEquity
As your company grows, numerous people, including senior management, investors, accounting department, and lawyers, will need to access your Cap Table. Having different versions of the Cap Table can prove to be extremely cumbersome for founders. Therefore, it is important to keep a single source of truth – a Cap Table that is updated in real-time.
MyStartupEquity streamlines Cap Table management. Founders and CHROs & CFOs maintain a centralized Cap Table and make entries on it seamlessly. The system takes the input and auto-updates the cap table wherever necessary. Moreover, convertible securities can be converted in seconds and access the fully-diluted cap table almost instantly.
Centralized cap table with round-wise and investor-wise overviews
When you log in to MyStartupEquity, you will be able to access the Cap Table dashboard. Here, you will see 2 versions of the cap table – round-wise overview and investor-wise overview.
While the shareholder-wise overview shows the top shareholders in a piechart and detailed info of all other shareholders in a list, the round-wise overview shows the investors’ holdings in each round.
In the investor-wise overview, each investor’s holdings are shown – including equity shares and convertible securities.
In the round-wise overview, the founder or CHRO/CFO can click on the ‘convert securities’ button adjacent to each round and convert all convertible securities into shares of that particular round in a matter of seconds.
Update the Cap Table seamlessly
Updating the Cap Table is a rigorous and continuous but important process. It is necessary to update the Cap Table at every instance when employees are granted equity, equity-privileged employees leave the organization, employees exercise their options, the company raises capital, and at the time of liquidity events. A dated Cap Table can prove to be a huge hurdle before the next fundraising round. Founders can always rely on MyStartupEquity to update the entire Cap Table at ease.
An error-free Cap Table
A simple unaccounted error can lead to huge mistakes in valuations. It is important that you cross-check the information that you add to your Cap Table. You may be dedicating both time and energy, and even after doing this, you might lose the funding deal not being able to identify the mistake. To avoid this, ensure that you have the right information put together for your cap table.
But wait! Why do this manually when you have MyStartupEquity to your rescue. MyStartupEquity auto-updates your Cap Table without any mistakes.