A cap table, or capitalization table, is a summary of all securities in a company, including stock, equity grants, warrants and convertible notes. A cap table can be formatted in various ways, from a basic list of investors and founders to a more complex version with formulas showing proposals or projected transactions, such as a company sale or a public offering. But at its essence, a cap table should outline owners and what they own.
Why a Cap Table is Important
Cap tables show who the owners are in the company. The format depends on the company’s stage of development and structure of ownership and can provide applicable information for company actions, including relevant decision-makers and fundraising plans.
The minimum information on a cap table should include:
- The name of the stockholder
- Number of issued shares
- Issue date
- Relevant comments
- Disposition date for securities no longer outstanding
How Cap Table Software Maximizes Time and Efficiency
Keeping track of changing information in a cap table with such applications as Excel can involve significant time in manual updates and formula management, which take away from real analysis and time with investors. A cap table will also need to be distributed to various parties and should be easily accessible by each.
Cap table software increases efficiency and reduces stress by allowing for quick edits and updates without the need to manage complex formulas for such items as changes of ownership, control logs, AML compliance and cost basis tracking. Capable online software should also include such features as:
- Tracking of corporate governance
- Automatic reporting updates
- Support staff to ensure compliance
- Reduced legal fees
- Support staff-provided transfer of ownership
- Shared access for officers, board members and legal teams
- Administration of employee plans
- Access for employees and investors
A Stock Transfer Agent
An SEC registered and innovative online stock transfer agent and cap table management service in the Salt Lake City area can provide such personal services as SEC EDGAR filings, crowdfunding software, IPO and issuer compliance services for NYSE, NASDAQ and OTC-listed companies and full-suite services for private-held companies. Visit Colonial Stock Transfer Company, Inc. online at http://www.colonialstock.com/ or call 801-355-5740 to learn more.
