Introduction
Who owns your company?
At it’s core, it shows you everyone who has an ownership stake in your company. How many shares they have, from what class and their overall % ownership.
Whilst especially in the early stages, everyone has a general idea of this, its of fundamental importance that its kept accurate and up to date at all times.
Key Business decisions
Keeping a well managed cap table that allows you to easily see the full transactional history from incorporation will assist you in making key business decisions surrounding equity ownership and market capitalisation.
Record Keeping
Having your cap table ready to go will assist in maintaining an accurate and up to date shareholder register along with various other regulatory fillings.
Help and expediate funding rounds
Without a solid cap table it won’t be clear who owns what making it harder to attract investment and therefore having a solid cap table will both assist and expediate future funding. If you have recently got funding or are planning to raise then you have to take on the cap table.
Exit events
Down the line, if you’re looking at an exit event, the cap table is the corner stone for evaluating the distribution of proceeds to shareholders