Cap Table Management Software
November 29th, 2005One of the things I love about running an incubator is that knowledge is worth more to us than it is in the hands of a single startup company.
Why? Because if we learn something or discover something of value, then we can apply it multiple times, not just once. If a new tool creates value, or if a new process cuts costs, it's great to be able to apply it to every business where it would increase revenue or margins.
In the past when I found a new idea, I could usually only apply it once.
Today I started looking for software that can manage cap tables for all the companies which we start. Currently I have a few dozen Excel spreadsheets, some of which are out of date, that contain cap tables for our companies in their various stages.
It is a royal pain to try to calculate equity ownership when there are angels or VCs investing in a company and there are also stock option plans for management and employees that vest over time. You are mixing ownership with options and sometimes warrants (contingent options) with different time periods. It is very confusing. I know Excel is not the best way to do this.
So today I found a company, Two Step Software, from Waltham, Mass, that looks like they have a good software solution to this. My only fear is that their pricing model might be designed for large law firms, not small incubators.
Has anyone out there used Two Step's Corporate Focus Software, or any other cap table management software program?
Here's the link: http://www.twostep.com/solutions/ownership.htm
If you know anything about this kind of software, please tell me what you think.
Posted in: Software for Entrepreneurs
November 29th, 2005 at 22:02 PM
Paul, I actually engaged in a conversation with Doug McCartney who works at two step. He was very helpful and told me that a couple of his competitors that may be helpful are Transcentive or eProsper.
Maybe that helps...I haven't done any real research into those two companies but at least they're in the mix.
November 30th, 2005 at 14:28 PM
Paul,
Two Step's product is definitely targeted at companies as well as law firms. It not only
replaces your spreadsheets with a much more accurate approach to tracking stock, options,
preferred classes and warrants, but it lets you format that data in an almost limitless
set of formats, including capitalization tables. Further, many of our customers get tremendous
value out of our other capabilities, tracking important corporate governance details, filings,
and contracts. If you are a growing company that wants to be sure you are compliant for
going public or getting a acquired in the future Corporate Focus is the perfect cornerstone.
As one of the CEO's that licensed Corporate Focus said to me, "I'm out raising millions of
dollars and people want me to track the details in a poorly formatted spreadsheet - that's
just crazy. I can pay for this software in one round of financing."
Our pricing varies on many different factors, but I would encourage anyone with an interest
to contact us for details and a demonstration.
Thanks!
I'm going to be worried about a license fee in the thousands of dollars?"
December 1st, 2005 at 20:16 PM
Our company, Transcentive (a Computershare company) also offers an
equity management tool that also features the abilty to cap table.
The product is called Express Equity Manager (aka: Express Options)
and can handle the management and adminstration of your company's
employee stock option program. Please visit our website at
www.transcentive.com
Thanks!
January 31st, 2006 at 17:09 PM
Just found this, haven't read it:
Founding Team Equity Splits
August 18th, 2006 at 03:38 AM
Paul,
eProsper would be happy to familiarize you with its cap table management, analysis, FAS123R and participant (aka optionee) view tools as well as its full-service outsourcing capabilities. eProsper's software and services are being utilized by 600+ emerging grwoth companies, their law firms, VCs and auditors.
Feel fre to contact me directly.
Good luck and much success,
Peter Dickstein
President and CEO
May 15th, 2007 at 16:24 PM
Paul,
Did you ever try any of these or find anyone that uses them? I am curious how they work.
Aaron
August 5th, 2008 at 11:08 AM
Paul,
I'd like to introduce you to www.VCMcaptables.com . We offer a reletively inexpensive online captable management tool. One builds a cap table, adds rounds, stock holders and liquidation preferences and then can out this information into a formatted excel sheet.
Two additional features I think should be of interest:
1. one can build scenarios eg what if the next round is a 3@7 with a double dip, 8% coupon, convertable participating prefered with a 3 cap and then see how that would be different to a 3.5@7.5 with a 1.5 dip, 7% coupon, convertable participating prefered with a 2 cap.
2. see what the exit would look like at different values (taking into consideration the liquidation preferences and scenarios.
I'd be happy to demo it to one and all.
Post new comment