Cap tables

I recently read Fred Wilson‘s blog post on Union Square Ventures’ company eShares.  Basically, eShares is a platform which allows companies to manage their cap tables online. Companies can issue shares and options, manage secondaries, and perform other cap table related actions through a centralized online platform accessible to all the parties involved in the company.

Working with over 60 companies, it takes a lot of time for me to keep each company’s cap table updated. Each time a primary or secondary transaction takes place, or an employee receives equity or options, these cap tables need to be updated. They then need to be shared with all other parties. The current way this happens is through tens of emails exchanged among founders, employees, investors, and lawyers. Very often one party doesn’t have the latest version of the cap table and this creates a lot of confusion.

I then saw the Twitter exchange below between Cem and Fred. I hope that eShares starts supporting companies outside of the US soon. We would be among the first users in Turkey.