The majority of startups in all sectors divide their time between developing their products and searching for the investment opportunities that will lead them to future success. One of the problems most startups face is keeping track of the number of investments that have been made in their company and what level of ownership each investor has been given. Cap table software is a vital part of the life of each startup’s information that gives a quick guide to existing and potential investors about the financial future of the startup.
Cap table software is about more than just percentages
In its simplest form, a cap table is a list of all the shares held in a company and the investments made by each individual in a startup or existing company. The latest software is about much more than just giving the executives of a company a glimpse into its financial and ownership health, it is also about tracking every aspect of stocks and shares linked directly to the company to understand exactly who owns a percentage of any company. The latest cap table apps will give a detailed view of the transfer of shares, each stock issuance, and much more.
Negotiate better terms
There are many options for startups to raise funds through different rounds of funding with each round bringing new investors on board. By keeping a detailed cap table the owners can negotiate with ease as they have a detailed breakdown of the ownership of their company as they enter their latest finding round.
