Cap tables are spreadsheets that provide information about a given company. Essentially, they list all the securities involved in the ownership of the company, from stocks to options. The simple fact is, there are many advantages to using cap tables to provide information about your business, no matter how large or small it is.
Many Advantages
When a firm is in the startup phase, having clear, detailed cap tables is crucial to attracting investors. People who are putting their money into an unproven entity want to see clearly who is involved and what the company’s assets are. Using cap tables is an established and informative way of getting this information across. Essentially, when a potential investor sees a professionally created cap table for a company, they know that the firm is for real.
Next, cap tables help firms provide information concisely and clearly to banks. Having an elegant and intuitive cap table at a meeting can be the difference between getting that all-important bank loan and being denied.
Furthermore, cap tables are a great way to help convince employees to invest in their own companies. When an employee sees a professionally created cap table about their firm, they are more likely to invest.
There are many advantages to using these table, and it is best to outsource cap table tracking to an outside firm. To learn more about a team that provides cap table tracking and other services with a relentless focus on customer service, check out the website of Colonial Stock Transfer at www.colonialstock.com.
