all come together for the future of your company. With Global Shares’ cap table management software, all you need to do is click a few buttons, and you can see exactly how the new financing round will impact your company – how the valuations, investment, post-money, dilution, etc. And with different amounts, and different terms, it can be hard to know which one is the best choice for you and your business.Īt least, it was hard to know. The choices you make in investors directly impact the sustainability and success of your company. Even with just a choice of two or three, it can be an overwhelming decision to make. So great, in fact, that you have had an incredible amount of term sheets (offers and terms of investment). Well, imagine that your fundraising round with investors went great. Once you do, you’re ready to transform this essential tool into a valuable asset – one that can help you make the best decisions for your company. Now that you know why it’s so important to have a great cap table, hopefully, you are ready to upgrade to a dynamic and comprehensive cap table. 01%? It directly impacts their return on investment, and therefore their decision making. If they’re receiving 10,000 shares, is that 10% of the company or. Investors also need to understand how diluted the company is. You can have the best idea in the world, but if an investor can’t trust your cap table (or even read it), then you won’t get funded. Because if your cap table is poorly designed, there is a much greater chance that you have made a serious mistake, or missed something in your ownership. If you have a great idea, but your cap table is poorly constructed or is incomprehensible then the investor is more than likely going to pass. But with a single glance at a well-built cap table, they can see exactly what their investment is worth. It’s very hard to know how much a company will be worth – the world changes so quickly and is filled with plenty of great ideas. And how many shares have already been distributed, and the structure of the distribution. How much the company is worth or will be worth. So, it’s critically important for the investors to know how much those shares are worth. Simply put, they give you money, and you give them shares. Why are cap tables so important?Ī cap table is a document that shows the owners and the breakdown of ownership in a company.Īn investor looks to make an investment in your company, in return for an ownership stake. ![]() So, before we get into the incredible things that you can do with a great cap table – first let’s take a look at why cap tables are so important. And these are important parts, for sure, but they don’t compare to the cap table. Others might think their leadership abilities are the real driver of their business. ![]() Many people might instinctively think the idea is most important. It bears explaining this, because if you haven’t heard this before, or even if you have but you’re just not convinced, it’s the first thing you need to understand. (At least, hopefully, you have.) There’s a reason that this is repeated like a mantra. ![]() If you’re a founder or CEO or even a CFO, you’ve probably heard this a million times. Your cap table is the most important part of your growing company.
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