Cap Table Management
A capitalization table lists your company’s securities. This list may include stocks, warrants, convertible notes, and equity grants. Cap table management takes this and simplifies the execution. In the end, a successful cap table details who owns what at a company.
Cap tables can exist in multiple formats and complexity levels. A simple one may only summarize what is happening at the company currently. However, a more sophisticated model can model hypothetical transactions. For example, it could tell you what would happen if the company went public.
Why Do You Need a Cap Table?
Cap tables show a detailed breakdown of who owns what at the company. Depending on the type of table used, it can show different information too. Some tables can show the company’s stage and ownership structure. This information can impact fundraising and who needs to sign off on decisions.
Creating a Cap Table
As a business owner, you should know there is no right way to create a cap table. The method you should use will depend on what your goals are and what you want to achieve. Here are a few things any cap table should include to be useful:
- Stockholder Name
- Date of Issuance
- Number of Shares
- Concise Commentary
- Date of Disposition
An automatic manager can update the cap table without external input. Furthermore, they can automate information distribution, reducing what is on your plate.
Here are a few benefits you can expect from a cap table manager:
- Track Corporate Governance
- Compliance
- Reduced Legal Fees
- Ownership Transfer Service
- Automatic Updates
- Shared Access
- Employee Plan Administration
Contact Colonial Stock Transfer at https://www.colonialstock.com/.
