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Why should you digitize your captable?

When we have always been using excel spreadsheets…

Single Source of Truth

Whilst the prima facie record of ownership is the regulatory filings (ACRA or Registrar of Companies), those records do not capture information pertaining to more complex instruments of ownership (options, warrants, convertible notes, etc.).

  • Transaction history (how did we end up here) gets lost or
  • Information on derivative securities is inaccurately or incompletely recorded

Equity Awards as part of Payroll

Most early-stage businesses (should) use equity incentives to retain and motivate talent. These schemes are only as useful as perceived by the recipients. Since these awards are “illiquid”, their value proposition remains a black box except when a new round is being raised. Employee engagement around the value proposition of their ESOPs is quite broken.

Ongoing Investor Management

Founder(s) already spend a substantial amount of time and effort in fundraising — courting investors takes a toll. However, investor management does not end with fundraising — that is just the start. Many investors, especially institutional investors, need regular updates including about ownership for reporting and compliance purposes. With large private financing being available, companies that scale are also staying private for much longer before they undertake a liquidity event or an exit.

Being Transaction Ready

Companies are bound to undergo major strategic maneuvers such as a merger, acquisition or simply raising a new round of capital. These are all incredibly complex processes that traditionally require working with advisors, bankers, legal counsel, tax consultants, and such subject matter experts. Digitising equity management can spare the founders and company management considerable time on due diligence and financial modelling.

Say Yes to the Digital Revolution

We hope by now you are convinced of the undesirable consequences of continue letting your captable live on spreadsheets, here’s a quick recap:

  • Share a single source of truth with all stakeholders
  • Manage your equity awards and communicate their value systematically
  • Streamline investor communications
  • Be transaction ready. Use digital decision-making tools.

Talk to team Qapita to make your equity management completely hassle-free. Psst…for companies with less than 20 stakeholders — it’s free of charge!

#equitymanagement #captable #digitalization #esop #employeeownership #investorrelations #foundersdilemma #venturecapital



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