If you are a startup, then you definitely have a lot of things to think about. One of them needs to be identifying who owns stock in your company. Making these people happy will help you grow faster, but it can be difficult to keep track of who owns stock on a real-time basis. A cap table can help you with stock option tracking.
While you may be able to keep track of your first two or three investors in your head, it becomes more difficult to do that as your company grows. Stocks may be sold to people who invest in your company. They may be given to employees as part of their benefits package. Of course, the founders will want to maintain stock in their company. A cap table allows you to see at a glance who owns preferred and common stock so that you know who you need to influence before your company votes on a major decision.
Most cap tables show you at least three basic pieces of information about the owners of your company stock. They show you their legal name. A cap table also shows you when they obtained their stock option. It shows you the number of shares that they own.
Use a stock option tracking table to help you make many decisions quickly. It can help you the equity in your company, helps you decide how equity should be distributed and helps you manage employee stock options expertly.
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