Every founder or investor knows the importance of a well-updated capitalization table. The main use for the cap table is mostly about keeping track and knowledge about all of the relevant equity (including ownership distribution), as well as creating transaction and waterfall simulations. What some might not comprehend is the vast difference between a spreadsheet-kept Cap table to a digitally automated one. Here you will find out how to step up the company’s financial strategy game, as well as reduce time and effort creating many hard to come by, necessary reports (including the SBC report).
When creating a cap table via Excel and its similar, the updating process is exposed to human error and might give a false representation of a company’s value or equity. Furthermore, even if the cap table is made flawlessly, any information that might benefit the company (such as transaction simulations) will need a long, hard, and highly complicated calculation – often given to an external company to construct.
Fortunately, there is a seamless and relatively simple solution: Digital (SaaS) cap table management. Just imagine knowing everything before it happened, understanding exactly how a deal will affect the entire company’s stock distribution and worth. Imagine a way you can create countless reports with the click of a finger and prepare the SBC report seamlessly. This is the moment we do as every founder does, making this imagination into a reality, we’d like to introduce Altshare – the way founders do equity and manage their cap table in 2022.
Up until now, the cap table gave a very narrow input of information, every year it had to be readjusted and sometimes recreated just to give some basic information. With the Altshare platform, all information can be updated 24/7, as well as assisting in creating any equity-related report in a heartbeat, including the 409A, and SBC report.
Up until now, thousands of successful startups, unicorns, and commercial companies transferred all their equity databases to Altshare and With Altshare, founders easily track & Manage the company’s equity, without spending their entire time on the subject, or without the paid assistance of an outside company. This way the books are being kept meticulously by an automated SaaS, and reports can be issued perfectly and on time.
When a big opportunity finally arrives, many reports will be asked to comply with the due diligence – many of them will be issued through Altshare. This might help ensure investors, and encourage them to give their trust (and money) to a company that gives a well-organized and hands-on vibe.
For the skeptics among ourselves, here’s an experiment you can do: ask your CFO or provider what it will take to issue a full report about everyone’s stock-option plans, if you get an answer that’s made out of more than one simple sentence – you are losing valuable time and money.
Let’s complicate things, shall we? Try creating a waterfall scenario, say your company is being sold for 50M, and there are 2 investors from previous rounds, the first one invested 2M in the company’s seed round for 100k common stocks, and another 4M in the company’s round A for 50k preferred stocks. The other gave 3M for 37.5k preferred stocks. In this theoretical scenario, 5 years have passed, as you recruited 80 employees and allocated 10% of companies total stocks for its options pool. Until now 75% of all options are vested. Now, how much money will you gain from this incredible opportunity? Don’t overthink it, just enter your Altshare account, fill out the information and get an answer instantly, it’s not magic, it’s Altshare.
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