One 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 Currently I have a few dozen Excel spreadsheets, some of which are out of date, that contain cap tables for our companies in their various stages.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.