Posts tagged Cap Table
Advantages of Electronic Shares of Stock

Instead of using paper-based stock certificates that are laborious, time-intensive and expensive to administer, companies can issue electronic shares. To understand how electronic shares work, consider what happens when you directly purchase shares of stock in a public company today (if you purchase them through a brokerage, the brokerage is registered with the company as the owner of the shares, not you).

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Disadvantages Of Paper Stock Certificates

If you bought shares of stock in a public company in the early 1900s, you received your shares in the form of paper stock certificates. While they might be pretty to look at, paper stock certificates are pretty in many other ways, too. For companies, they are pretty expensive to maintain, pretty laborious to manage, pretty onerous to track, pretty burdensome to replace and pretty tough to audit. For shareholders, they are pretty hard to track, pretty challenging to value and pretty difficult to use.

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Why A Startup Doesn't Need To Hire A Transfer Agent

Many startups begin tracking their cap table using a spreadsheet. However, once a startup begins using stock grants or stock options that vest over time to attract, retain and reward employees, it quickly becomes apparent that a cap table with these complexities can't be maintained in a spreadsheet. A startup that has outgrown a spreadsheet to manage their cap table has two options. Insource by using software specifically designed to maintain cap tables. Or outsource by hiring a transfer agent.

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Help Founders Improve The Lives Of One Billion People

Equity Token's equity management platform enables the creation of tokenized equity. Equity Tokens can be instantly transferred, offer a shorter path to liquidity, provide global investor access, lower transactional fees, increase transparency, and much more. In order to facilitate this process have designed our own new set of smart contracts to make it easier for teams to work together and grow together.

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