Qapita: CapTable Management Simplified

The cap table of a company should show the company’s overall capital structure at a glance, as well as detailed ownership information for each class and series of stock outstanding. Most importantly, any reference document with cap-table Information should be accurate and up to date - derived from a single, centralised source of truth.

That’s what a cap table should be. The reality, however, is quite different. Pallavi Nautiyal, QAPITA’s North India Head, talks about the problems caused from improper Cap Table maintenance and how QAPITA’s solution helps avoid these problems.

The problem Qapita is trying to solve

Cap Table numbers and facts are typically maintained by founders in spreadsheets until they just can’t. At initial stage, a company’s Cap Table is fairly simple with limited investors. However, as the company grows and raises multiple rounds of funding, with different investors coming in at different points of time, at different valuations, with different ownership instruments and rights - the information becomes more complex and managing all this complex information on spreadsheets may become a bit cumbersome and overwhelming at the same time. So, you need better, automated systems in place.

Absence of a reliable system results in multiple issues like,

Multiple versions of the same Cap Table at varying stages of updation. Your investors might have a more dated version of the Cap Table around the time when they came in, your finance team may have another version, your advisors or company secretary may have a different version. So, each may end up interpreting and understanding your cap table differently.

Error ridden Cap Table due to human involvement. Errors due manual recording and maintenance can range from just typing errors, miscalculations to complete omissions. Tracking these errors across multiple spreadsheets and reconciliation is an arduous task.

Delayed decision making. Improperly managed Cap Table might potentially delay investor reporting, create issues during diligence process during the next fundraise, complicate financial assessments and decision-making with respect to the offer term sheet during your next financing round and so on.

Inability to recruit or retain talent. Nowadays, equity is a key consideration in talent recruitment and retention packages. So, without a ready to query and accurate Cap Table and ESOP information source; providing access to relevant ESOP data becomes increasingly difficult and error-prone.

Security Risk, managing the Cap Table in Excel poses a risk around information security and confidentiality related to shareholders information.

Therefore, without access to an automated system or a single updated source of Cap Table information, you find yourself prone to costly repeated mistakes and struggling with operational decision-making and management of related process.

The solution Qapita is offering

Qapita offers you a digital equity management platform, with integrated cap table and ESOP management modules. So it essentially captures the ownership as held both by the investors as well as the employees. Within the cap table module, we have a main cap table section that acts as a single source of truth regarding ownership - bringing in information integrity. In addition to that, the platform has a dedicated transaction section, because essentially your Cap Table is a time series of equity related transactions that have happened since the inception of the company. There is also a stakeholders management section from where you can assign different user rules to your investors, employees, advisors or a third party and provide them with varying degrees of access to your Cap Table, thereby ensuring confidentiality of shareholders information.

The platform has a reporting model that helps you generate the most elaborate reports at the click of a button. The platform provides a data room for information sharing with investors, finance teams, HR teams, ESOP holders, advisors, legal teams and so on, which is a far more efficient and secure alternative to G-Drive. You can also tag and track all your transaction, regulatory, legal and compliance document like, your shareholders agreement, share certificates, ROC filings, KYC documents etc., on the QAPITA platform. So, essentially QAPITA becomes a data store and your documents store as well.

Given that QAPITA captures all this relevant information, it has enabled elements of scenario modelling on the Cap Table itself. For example, Dilution Analysis - you can see the impact of an incoming term sheet offer on stake of your current shareholders and the founding team, in case you accept that term sheet. Also Exit analysis as well - so, tomorrow if you sell your company at a certain valuation who gets what? Some of the most common scenarios are automated on the platform to help you in faster decision-making.

With this base of Cap Table information integrity and control, the Qapita platform brings in automation and processes that aid decision making and drive stakeholder communication and satisfaction. From hereon we are building to plug in wealth creation value adds through our liquidity and marketplace module.

Who needs a Cap Table & ESOP Management platform?

QAPITA caters to start-ups across the spectrum - from very early-stage start-ups where ESOP policies are yet to be implemented to late-stage Series-D, Series-E funded pre-IPO start-ups as well. Any fast-growing start-up can leverage the software solution offered by QAPITA and can start experiencing significant benefits from day one of using the platform.

How Qapita differs from the competition

QAPITA holds a strong differentiating edge over other players on various dimensions,

Innovation - 'Équity PaySlip' - a first-of-its-kind, unique, innovative product that we have come up with and which is quite popular among our current clients. It is a system generated document that you can issue monthly or quarterly to all your ESOP holders, to communicate the value of ESOPs to your employees. We think that this can potentially be a high-impact tool for employee motivation, engagement and retention.

Instead of just being a dump of spreadsheet numbers, Cap Table in QAPITA is built transactions up with all the relevant documents tagged along with each transaction.

QAPITA is the only platform with a full stack offering around ESOP management with dedicated offerings for digital ESOP management, ESOP advisory and ESOP liquidity solutions.

QAPITA has built a dedicated customer success team to provide unparalleled onboarding and ongoing support to our customers.

Large Product & Engineering team with 60+ members, probably largest amongst all players. Hence, QAPITA can always consider customizing or prioritizing features that are important to you.

“Great User Interface” is one of the constant feedback that QAPITA keeps hearing from their customers who have experienced the product.

How to reach out to Qapita?

You can reach out to QAPITA through our website and place a demo request. You can also reach out to any of QAPITA’s business team members to arrange a demo call, walk you through the QAPITA’s platform and address your queries. You can also reach out to info@qapitacorp.com

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