When it comes to raising capital, using a spreadsheet won’t cut it. 

Today’s sophisticated investors demand founder’s use cap table management software. 

“If companies present me with a cap table spreadsheet on the first meeting, they won’t get a second meeting.” Mike Millard Partner @ Ecliptic Capital

Why? 

Investors are increasingly finding that they don’t have transparency into the value of their investments:

“With founders raising on Notes & SAFEs across different caps and discounts, there’s no line of sight for how my investments will convert in a priced round. The problem becomes larger as I invest in more startups across different stages.” Anand Rao @ Tycoon Ventures

And often… founders simply do not know what they own: 

“SAFEs and Convertible notes can convert in unexpected ways. With spreadsheets it was always a challenge to get a clear picture of my cap table.” Sia Nazari Founder & CEO @ Ziggurat

Spreadsheets are even more inaccurate, opaque, and unusable as startups look into the future and predict how much dilution they will incur when their notes will convert at various prices. 

Calculating how much different cap table members will make at exit is not possible. 

Without this knowledge founders are totally flying blind with investors. They can’t effectively pitch the exit upside, evaluate the terms offered, or negotiate.

“An investor asked me to show him how much he would make at different exit valuations. It took me weeks and hundred of dollars to get the information from my lawyer. By then the investor got distracted by another deal and lost interest in the investment.” Jeff A CEO @ AScanner

A traditionally expensive solution

Cap table management software solves these problems and brings accuracy and transparency to startup equity holdings for everyone: founders, employees, advisors, and investors.  

Unfortunately most of the solutions charge you more and more based on how many people are on your cap table, how much money you have raised, or how many times you want to look into the future to see how your notes will convert or how much money you will make at exit. 

And if you want to look one just one round into the future to figure out how your notes will convert during the next priced round… you’ll need to upgrade your plan, negotiate with a chat bot, and hope you come out of the discussion with any runway left.  

But thankfully, there is a new alternative – Unlimited $240/year Cap Table Management

At TWO12 we believe transparency of ownership, both today and into the future, is a ‘birthright’.

Cap table members have the right to be informed as possible about their holdings.

This will lead to better decision making, allocations of capital, and ultimately propel the growth of the startup ecosystem. 

To support this effort we have developed Unlimited $240/year Cap Table Management software. 

That means 

• Unlimited Shareholders: No cost for employees, advisors, investors, and other cap table members.
• Unlimited Rounds: Are you a seed-stage company or series C? We don’t care! It’s still $240/year.
• Unlimited Dilution & Exit Modeling: Calculate how your notes will convert, how much dilution you may incur in later stage rounds, and how much money you will make at exit.

 

But is it the right time for you to ditch your spreadsheet? 

You’re probably reading this because you’ve been wondering if cap table management is right for you, if it’s worth the cost and effort. 

I’m sure you’ve heard it’s expensive and a hassle. 

I’m here to tell you it is 100% worth it – and for $240/year TWO12 will set you up for success with your next fundraise.

You’ll get everything you need to properly manage your startup’s cap table and be ready when your next investors says yes!

PLUS we’ll migrate your spreadsheet into our system (or migrate you from a competitor) for free. 

White glove onboarding is included with every cap table (no extra hidden fees here or anywhere). Usually it takes us a few hours but at most a few days. 

But, I’m the CEO & Co-Founder so don’t just take my word for it: 

“Spreadsheets made it impossible to visualize my startup’s equity breakdown with open SAFEs and options I planned to issue. All my problems disappeared after I switched to TWO12. Dilution & exit modeling was critical to understand dilution and plan for future rounds. Onboarding was easy and customer service is unmatched.” Sia Nazari Founder & CEO @ Ziggurat

“As our company grew and the investor base expanded, we found ourselves looking at a major price increase from Carta during our annual renewal. The CARTA solution was already expensive, and their customer success manager had no interest in discussing the cost issue. I spoke with my VC, who suggested we switch to TWO12.”

“TWO12 meets 100% of our cap table and shareholder requirements. They continue to add features and actually engage with their customer base regarding the tech stack. I love the team and product. The TWO12 Migration? Awesome. TWO12 stood up the entire cap table in a few hours, making the transition seamless.” Eric Klasson Founder & CEO @ Pandemic Insights

And it only gets better from there. 

Other benefits of cap table management software include: 

• Data room included (all your docs in one place)
• Document tracking included (track documents, version control, and stop paying for DocSend)

In addition to saving you money on software, TWO12 also saves you money on lawyers. 

Since all of your cap table is at the tip of your fingers, you no longer have to pay a paralegal an $110 to tell you how many options you have left in your pool. 

By saving founders money, time, and headaches… as well as empowering them with the data and ammunition to make better decisions and negotiate with seasoned investors…we strive to help founders realize their startup dreams.

–Dustin Byington Co-Founder & CEO of TWO12

PS > I hope you join us on the journey – click here to schedule a demo and join the future of startup finance.

 

PS > Guide to Priced Round Terms Webinar

If you have any questions on the topics of priced round terms or term sheet negotiations we’ll be hosting a webinar on this topic soon, please email us at hello@two12.co to be notified. 

 

About Dustin Byington

About TWO12

Unlimited $240/year Cap Table

Fast 409A

Real-Time Fund Administration