Blog Category: Cap Table

In one of McKinsey’s Global Survey, they found that less than 1/3rd of companies that underwent corporate restructuring could sustainably improve their performance. However, when companies implemented comprehensive actions in goal-setting, design, and implementation, the success rate shot up to as high as 78%. Once again, we are reminded that the devil resides in the … Continued

In the case of startups, the cap table changes mainly over financing rounds. A simple cap table that starts with equity divided equally among all founders can evolve into a much more complex description of a startup’s ownership structure. Over the course of its life, in order to raise funds and attract and retain employees, a startup … Continued

The need for efficient and adaptable equity management solutions is growing every day with the growing complexity of equity structures and the popularity of equity compensation. From 2021 to 2024, the percentage of HR leaders who reported offering equity compensation rose from 65% to 76%. Similarly, in the past decade, we have seen equity interests … Continued

Although the dilution impact on company valuation is positive, not all shareholders feel this way. To minimize this, they may want to exercise their anti-dilution rights, i.e., get more shares issued from the company. To help your investors decide whether to exercise anti-dilution rights, you must provide effective summaries of cap table dilution. In this … Continued

The basics of how a company’s equity is divided are outlined in the company’s cap table. In simple terms, a cap table or otherwise known as a capitalization table, is a list that summarizes what percentage of the company each shareholder owns. It is crucial for shareholders to understand the role and purpose of the … Continued

Entrepreneurs are developing their idea into a marketable product and investors are eager to fund the best innovations. However, in the middle of the hustle to develop, pitch and secure funding is an equally essential task: cap table management.  Due to its complexity, managing a cap table is daunting for many people. Especially with cap … Continued

A capitalization table is a foundational element for startups. It details equity ownership, types of shares, and stakeholder information. When you maintain an accurate and up-to-date cap table, your startups can make informed decisions about fundraising, equity allocation, and overall business strategy. However, the cap table management industry is not without its challenges.  However, these … Continued

Figure Equity Solutions has gained a reputation by providing a blockchain-based platform for managing primary issuances and secondary transactions. This technology allows companies to raise, manage, and trade equity on a single platform​.  Figure offers equity management solutions, but businesses seek more comprehensive and customized services as they expand. If you’re seeking a more comprehensive … Continued

Startups begin with unique ideas and make it through innovative thinking, hard work, and all the other hurdles. They eventually achieve traction leading to maturity. One of the important elements in a company’s evolution is developing and managing the shares through a suitable pro forma cap table. It might be hard for newcomers in the … Continued

Astrella by EQ is a cloud-based platform that offers equity management software for private businesses. It provides tools for managing cap tables, monitoring ownership transfers, and guaranteeing adherence to legal and regulatory obligations. Many people like Astrella because it has features necessary for stock valuations and regulatory compliance. As businesses expand, however, their requirements evolve. … Continued

Your company’s cap table, the capitalization table, is the essential document for monitoring ownership. It lists everyone with a share in your company, including individuals, institutions, and other entities. In 2022, the global market’s value for equity management software was at approximately $11.2 billion, and forecasts indicate it is poised to grow to an impressive … Continued

Shareholders take on increased risk as they stand to gain little if the company faces bankruptcy. They have the potential for greater rewards through the appreciation of share prices during the company’s success. However, sometimes, a shareholder can hinder the smooth operation of a business, becoming an obstacle to the corporation’s goals or impeding decisions … Continued

Computershare GEMSpm has recently announced its discontinuation from April 1, 2024. We know your difficulties in efficiently managing your equity and cap tables. Although switching to an alternative to the Computershare cap table could be scary, Eqvista makes the process easy and smooth.  By signing up with Eqvista, you can be certain that your switch … Continued

LTSE Equity recently announced its discontinuation of services. This might worry several clients and got them looking out for the best LTSE Equity alternative. While any cap table management software can make that switch from LTSE Equity cap table easier, ensuring data security and smooth transition with no data being lost and corrupt is essence.  … Continued

Efficiently managing cap tables and equity is a critical responsibility for firms in equity management. With several platforms offering distinct features and dynamics, it’s important to pick one that handles equity management concerns and protects sensitive data.  You might be aware of the recent stir caused by Carta’s data breach. Some platforms’ suspected usage of … Continued

Founders launch a company to sell something that they have developed. However, as a company grows and evolves, it must adapt its operations to make strategic decisions about its future development. Establishing and maintaining an accurate capitalization table (cap table) is one such step. Risk mitigation is crucial for investors. Therefore, as your business expands, … Continued

The impact of issuing more shares of stock on each shareholder’s proportion of ownership is said to be “dilutive” when more shares are issued. To put it another way, the number of shareholders has increased, meaning that each individual now has a smaller share of the pie. When new stock is issued, existing shareholders may … Continued

When the economy is unstable, it is especially important for businesses to carefully manage their equity resources so that they may continue to thrive. Although downturns are usually shorter, they may nonetheless harm investors significantly. These economic cycles can also bring about prosperous times.  Since 1937, drawdowns linked with recessions have caused the S&P 500 … Continued

The cap table stands as a financial blueprint of the company stating the details of the ownership within the organization. Accurate cap table management is the backbone of effective corporate governance, as the cap table assists in making informed decisions and sound strategies. However, ensuring the accuracy and integrity of this crucial document is not … Continued

In the case of cessation of employment before the customary retirement age, vesting refers to transferring an employee’s unassignable rights to funds provided by an employer in a pension fund or retirement plan. Employers may grant employees stock options or shares in the business as part of their pay. This is an endeavour to persuade … Continued