Now that your business has reached the level of needing investors to grow, you will be faced with a multitude of decisions that you will need to make. One of the easiest to make, however, is using cap table software with which to manage your data. There are many reasons why you will want to do this.
Better Negotiations
Since capital funding will be raised at intervals, you will need cap table data that is 100% up to date or risk having potential investors legally able to renege on the deal because misleading or wrong data was provided. You will also probably want to offer varying levels of ownership to investors during these times. This cannot be done unless precise ownership data is available at any given time.
Options
When issuing vested options to current employees or offering them as part of a lucrative compensation package, you need to be able to track the current options that have already been issued. This is also crucial because some employees may exit the company earlier than they can take advantage of the options in which case the options would be returned back to the company.
Hire Better Talent
In today’s business environment, employees are well aware of how to negotiate better benefits packages. To be able to hire and retain the best employees that they can, they need to be able to show prospective hires exact information via the use of cap table software.
Please contact EquityTrack at https://www.equitytrack.co/ for more information.
