Cap table need not be rocket science

Posted by  Rajesh Gopi   on October 02 2020

 

Human brains are hardwired to process visual information far better than raw data. Research shows that more than 90% of the information transmitted to the brain is visual.

 

Warning: the next sentence may induce sleep.

 

The coordinate A(1, 1, 2) represents a point on a tangential plane to a parabolic surface represented by x2+y2-z=0.

 

Still reading? How about we represent the above sentence visually?

 

Screen Shot 2020-10-03 at 3.47.28 PM

(Courtesy: GeoGebra 3D Calculator)

 

Representing complex concepts visually makes it easier to comprehend them, build mental models, and project scenarios into the future.

 

So what does this have to do with cap tables?

 

At TWO12, we want to demystify cap tables, help founders visualize cap table complexities, and empower them to make decisions to preserve equity for all their cap table participants.

 

Just as an understanding of calculus is a fundamental requirement for all rocket scientists, we believe that an understanding of cap tables is a fundamental requirement for all founders.

 

Precisely knowing the impact on dilution by different terms of capital instruments, tracking distribution of equity amongst common, preferred, option, & warrant holders, and modeling out future raises & exits - all help founders master cap tables & negotiate equity with employees, investors, and service providers.

 

Read ‘How your cap table story impacts fundraising’ for scenarios we run into with founders lacking visibility when managing their cap table on a spreadsheet.


Find us at https://two12.co or email us at hello@two12.co to sign up for a 14-day trial and learn how we can help founders easily understand their cap table and preserve their equity.

Topics: Knowledge, cap table, startup