Cap Table Management Software

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 Currently I have a few dozen Excel spreadsheets, some of which are out of date, that contain cap tables for our companies in their various stages.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

15 Comments

  1. 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.

  2. 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?”

  3. 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
    http://www.transcentive.com

    Thanks!

  4. 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

  5. Aaron Miller

    Paul,

    Did you ever try any of these or find anyone that uses them? I am curious how they work.

    Aaron

  6. kevin pearl

    Paul,

    I’d like to introduce you to http://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.

  7. Andrew Gale

    Paul:

    Did you ever find a solution to the problem that you posted here a number of years ago?

    I currently have exactly the same problem but $1000 per month for the use of their service is way more than I care to pay.

    Andy Gale
    714-634-1414

  8. steve

    I am a consultant for a variety of PE/VCs and think that adding on another level above the cap table for user friendly but still FAS157 (ASC 820) compliant valuations which would then flow through the cap table would be the perfect solution to both the valuation and cap table management issues. Does anyone know of one that combines the two or a company that is in the process of working on developing such a platform?

  9. Steve, to answer your question, yes, the Private Company Analysis Tool at vcexperts.com does that (ASC820) and so much more. The online tool is be untilized by numerous industry professionals.

  10. Paul, There is a new answer to your (old) question 🙂 My company has a new service for managing cap tables : (www.truequity.com We target both companies and law offices and focus on ease of use, while being feature rich (data management, what if scenario, liquidations scenarios, paperless option grants and more.. )

  11. Hello,
    just try to contact the company named: ” all4equity” (a french one). You will find the best tools to manage cap table

    Contact Olivier Gurs :+33615265085

  12. Ian

    I know this is an old thread, but new people may be coming. Quite a few of these companies that were talked about are no longer around.

    So if you came here looking for cap table software, check out Capshare (www.capshare.com). They have very user friendly software with workflow and waterfall tools, etc. And they are free for small startups with less than 10 optionees.

  13. You may like to try htttp://www.reportally.com cap table builder – its complete free for startups and early stage companies, and covers 99% of use cases

    Enjoy!

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