Last Updated: December 16, 2021

Using and Organizing Your Cap Table

Harnessing “Cap Tables” As A Decision-making Tool”

There are countless decisions made over the life of a business that impact capitalization. For example, if new financing is being sought, a series of scenarios may be needed to assess key factors such as valuations. An accurate and up-to-date cap table appraisal allow good business decisions to be made thoughtfully and rapidly.

By way of example, let’s say that your business is seeking new financing. Your charter probably requires that separate consents be obtained from a majority of Series A, B, and C shares.

In this scenario, your cap table should reflect the percentage of Series A and B shares (together) held by each individual holder as well as the Series C share percentage held by each holder. This will allow you to quickly gather the necessary consents for your new financing.

A Jump “START” To Cap Table Management

At Equa our aim is to provide a simplified solution to capitalization tables, one that reduces the time, labor and friction around a stock transfer. Here, the computation and retention can be done using technology (versus by an error-prone human) resulting in a faster, cheaper and more accurate outcome.

We are also providing our clients with new technology solutions that allow ownership transfers to take place in minutes at little or no cost. This signals a vast improvement over time and costs attributed to current best practices.

Finally, Equa's solution promises to mitigate a great deal of the record-keeping labor costs associated with transferring equity. With the prospect of record-keeping being done on-chain, there is no cost attributed to humans.

In the end, cap tables through instant, online issuance and transfer of company stock without transfer fees signify a groundbreaking innovation for today’s rapidly emerging “ownership economy.”

To learn more about Equa and sign up for a free trial, please visit us at equa.global