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Cap Table Overview

This guide walks you through using the cap table in Traact, helping you add and manage essential ownership information for individuals, entities, and external institutions.

What is a Cap Table?

A cap table (short for capitalization table) outlines the equity ownership of a company. It lists all the company's securities, such as common and preferred shares, options, and convertible securities, along with the names of the investors or other equity holders. Cap tables are crucial for tracking a business's ownership percentage, equity dilution, and equity value.

How to get there?

Step 1. Go to Entities

Step 2. Select the entity you want to manage

Step 3. Click on “Captable” Tab at the top of the page

 

 

Captable Overview

For entities structured around ownership percentages, including LLCs, LLPs, LPs, and other similar limited liability or partnership entities (such as LTDA in Brazil or GmbH in Germany), ownership is managed by percentages, not shares. You can:

  • Manage Members, Partners, or Managers

  • Assign ownership percentages

  • Track capital contributions and assets

For entities structured around stock and shares, including Corporations (Inc, Co), S.A.s, AGs, PLCs, and similar entities that issue stock, ownership is tracked by shares and stock classes. You can:

  • Manage shareholders

  • Create and assign stock classes

  • Record stock transactions (e.g. issuance, transfer, conversion)

  • Monitor equity changes over time

Entities Structured Around Ownership Percentages

Members/Manager

Adding stakeholders to the cap table reflects formal ownership of the entity. For entities structured around ownership percentages, stakeholders can be categorized as: Person (User or User Group listed in the platform), Entity (listed in the platform), or an External (Institution or Person).

 

  • “Stakeholder Group” can be used to group Stakeholders with similar characteristics. For Example, “Investors”, “Employees”, “Board Advisor”

  • Ownership can only be expressed as a percentage for entities structured around ownership percentages.

  • Internal notes can capture any important information needed about the individual Stakeholder.

Assets

An Entity that is structured around ownership percentages will have the ability to manage assets within the Traact platform. “+Add Asset” will allow you to enter the details of a Physical or Investment Asset.

Once the asset is added, select the “>” arrow next to the asset you’d like to add a “Buy”, “Sell”, or “Update valuation” event to give the asset its value.

 

Entities Structured Around Ownership Percentages

 

Stakeholders

Adding stakeholders to the cap table reflects formal ownership and a role in the company’s strategic and financial outcomes. In Traact, stakeholders can be categorized as: individual (User or User Group), Entity (Internal Entity), or an External (Institution or Person).

You can use “Stakeholder Group” to group Stakeholders with similar characteristics. For Example, “Investors”, “Employees”, “Board Advisor”, etc.

 

Person (Internal User or User Group listed in the platform)

An individual on the cap table means they own shares or have a stake in the company, often in the form of common or preferred stock, or through stock options. This person might be a founder, employee, investor, or a group of people listed in Traact’s User Management. Their presence on the cap table signifies their role as shareholders with specific rights and a share of any future profits or liquidation proceeds, depending on the company's structure and financial success.

Note: Ensure the contact is added in Traact before selecting it.

Entities (Internal Entity)

An entity on the cap table means that this entity has invested in or owns equity in the company. Entities often hold equity in preferred stock, convertible notes, or warrants, which may offer certain rights or privileges, like liquidation preference or voting rights. This can also indicate strategic partnerships or alliances if the entity is a major industry player.

Note: Ensure the entity is added in Traact before selecting it.

External (Institution or Person)

An external entity typically refers to a company or organization that is not directly involved in day-to-day operations but holds some ownership stake. This can happen when an outside investor, like a venture capital firm, private equity fund, or corporate investor, invests in the company. External entities often have unique rights or preferences that align with their investment goals, such as board representation or preferred returns.

Classes

The Classes on a cap table refer to the different types or categories of shares issued by a company, each having specific rights and privileges attached to them. These classes are usually defined based on factors like voting rights, dividend preferences, liquidation preferences, or the ability to convert into other types of shares.

These factors can be identified when setting up the Class or updated as needed.

 

Transactions

The Transactions tab on the cap table allows you to track and manage:

  1. Stock Transactions: Financing Round, Convertible Loan, Valuation, Issue Shares, or Secondary

  2. Equity Plans Transactions: Add a Pool, A Single Grant, or Add a Plan.

 

3. Legal Transactions: Incorporation, Third Party Acquisition, Third Party Disposal, Service Provider Acquisition, Merger, Liquidation, or Joint Venture.

Cap Table on the Org Chart

Step 1. Go to Org chart

Step 2. Go to View Option

Step 3. Select what you want displayed in the org chart, such as stakeholders or institutions.

You will see the org chart structure with the stakeholders and the percentage of shares for each.

Need Help?
If you have any questions or need assistance with a request, please contact your Customer Success Manager or reach out to the Traact Support team.