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
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
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.
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.
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:
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.
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 firstname.lastname@example.org to be notified.
I started my career at Goldman Sachs, have led two unicorn fintech companies, and am currently working on constructing the equity rails that Web2 forgot to build. My goal is to bring digitization, automation, and transparency to the startup asset class. You can sometimes find me on LinkedIn and Twitter.
TWO12 is on a mission to help founders realize their startup dreams. In addition to providing educational content focused on startup finance we also offer Unlimited $240/year Cap Table Management, 409a Valuations, Fundraise Valuations, Fund Administration, SPV Formation, Syndicate Backend Management, and more…https://two12.co/
Even if you are raising millions of dollars in a late stage venture backed company… you still shouldn’t be wasting thousands of dollars on cap table management in this economy. We’ve got everything you need for $240/year. Hire us instead of firing a contract worker. And use our best in category dilution & exit modeling to compare term sheets and strategize counter-offers.
Fast 409a compliance in as little as 3 days.
Finally, get real-time access to your fund’s performance and instant reporting.
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