Fred Wilson posted this excellent advice about Henry Blodgett's company, eShares. It's something every founder should use to replace those excel spreadsheets...pretty please
A “cap table” is a schedule of all the shares outstanding for a specific company. Here’s an MBA Mondays post I wrote back in 2011 on the subject of cap tables. If you want to know how much of a company you own, a cap table is the best way to figure that out.
Cap tables are almost always prepared and kept in spreadsheets, usually excel, but also increasingly google sheets. And, it turns out, they are often wrong.
Henry Ward is the founder and CEO of a company that is aiming to fix that called eShares. Last month USV led a Series A round in eShares and my partner John Buttrick wrote a bit about that investment today on the USV blog.
The reason I tell you this is that yesterday Henry wrote a great post about broken cap tables that everyone in the start up world should read. Here are the four big takeaway’s from Henry’s post:
- Most cap tables are wrong
- Most investors don’t track their shares
- Note holders are often forgotten
Employees suffer most...so look on this as a nice 2015 perk...