If you have just founded a startup, there is a lot to consider. One of these is whether or not to starta cap table. A cap table basically lays out all the people with an ownership stake in the company and what it is that they hold. This includes equity, stocks, grants, and other securities. There are even cap table management companies that can help you with this. Here are three reasons every startup should have a cap table.
1. Helps Your Company Manage Funds Better – As your company growns, more and more investors will add funding and other securites. An effective cap table management strategy ensures that this data is tracked properly, allowing you to use the information better. It also inspires your company to use these investments and funding more wisely and effectively because it is so carefully tracked.
2. Compliance – There are a lot of rules to comply with when you are managing investments. A cap table can help you track your financial status and ensure you are in compliance with all the laws and regulations surrounding your holdings.
3. Hiring and Employee Retention – When you hire new employees, you want to get the best one’s possible. This make include sweetening the deal by offering stock in the company. Your cap table can help you make solid offers that don’t overstretch you while you are getting the best employees possible for your staff.
You should have a cap table for your start up and EquityTrack has all the services you need to get that started. Learn more about how they can help your startup today by visiting their website at https://www.equitytrack.co/.
