Business Legal Services
Cap Table Creation and Management
Achieve greater transparency in your company with a clearly maintained cap table
A cap table is a visual representation of a company’s shareholding structure.
Companies like yours should ensure that they have an accurate and up-to-date cap table ready from the very beginning. A cap table makes it easy to see who owns what shares in your company and helps you get investment ready as investors will understand your company’s capital structure.
Think of it this way – if your company were a Netflix series, your cap table would be the recap rolling at the start of each episode.
With our cap table creation and management service, you’ll receive a correctly formatted cap table, which we can actively manage, and the ability to run specific investment or share scenarios to see how a future funding round or option issue could affect your company’s ownership structure.
Cap table benefits
Why is a cap table important?
A cap table is a visual representation of a company’s shareholding structure. It is good practice for a company with multiple shareholders to have one. It should be properly maintained and kept up to date. Creating and maintaining a cap table can be a tedious process though, especially in the early days when your time is limited and invested in starting and growing your business. Also, working out a cap table can be tricky in terms of share subscription prices, option percentages and company valuations. Getting it wrong and agreeing something on the basis of incorrect information can become costly.
Even though it isn’t a mandatory document to have in place, any errors in your cap table are usually reflective of errors in your company’s official ownership documentation. This can cause significant issues when approaching funding rounds or introducing employee incentive schemes.
As new investors join you on your business journey, they will dilute the equity of existing shareholders. Along your entrepreneurship journey, you’ll be hiring key new recruits, all with different classes of shares, starting and share vesting dates. All this information should be kept up to date in your cap table as your company grows.
In short, the benefits of a cap table are:
Funding rounds become easier and quicker to close if investors have visibility of a well-maintained cap table.
Offering shares and options to employees can be easier due to greater visibility of the company’s share structure.
Investor relations become stronger as potential investors have greater confidence in your company.
Negotiations and terms with investors become better and smoother as both parties understand the effect of incoming funds on the company’s ownership structure.
Employee motivation and trust is increased with properly implemented incentivisation.
Disputes are minimised as all parties are clear on who owns what.
You can properly plan for the future by knowing exactly how a future investment or exit scenario will affect you and your company’s share structure.
You’ll have more time back to focus on what’s important… running your business.
CAP TABLE SERVICES
I'm interested in setting up a cap table or reviewing my existing one. How can you help?
Our cap table service includes:
Creation of a dynamic cap table
You’ll receive a correctly formatted dynamic cap table broken down by stakeholder, saving you the trouble of tedious formatting and formulas. We can also remodel your current cap table if you already have one in place. This will include a scenario modeller to show the effect of an investment in new shares of an existing class by a new or existing shareholder.
Unique scenario modelling
This is what makes us different to the majority of online cap table platforms out there.
Once your cap table has been set up, you’ll have the ability to see how a future fundraise could impact your current stakeholders without issuing your shares. Our standard cap table contains one scenario modeller for you to use. After that, all you have to do is let us know what scenario you’d like to run and we’ll do the rest.
Ongoing cap table maintenance
As events occur which affect your cap table, we can make sure your cap table stays up to date and accurate, and contains a full history of all share movements in your company. This service is billed at our standard rates (as per your relevant pricing and service plan).
How does the service work?
Our cap table creation service is a fixed fee service for companies with up to 15 shareholders, up to 2 classes of shares, up to one option scheme/pool, and whose Companies House filings and statutory registers are up to date.
If you can’t say yes to all five of those criteria, don’t worry, we can still help you. Any of those missing criteria just mean a little extra work will be needed to get your cap table in order and up and running, under our bespoke offering. With our bespoke offering, you will receive the same end product as our fixed fee service, but with just a little additional work needed by us to get there.
If you require remodelling of your existing cap table, ongoing cap table management, updating and support such as ad-hoc scenario modelling and updating following a fundraise, this service is available at our standard rates subject to your subscription plan.
We’re not like traditional law firms. To provide your company with flexible and affordable legal support, there are three different ways you can work with us: pay as you go and two subscriptions. Learn more about our pricing plans.
How much does a cap table cost?
| Service plan
|
Engage
Legal support on our Standard Rates |
Enable
Monthly subscription |
Extend
Quarterly subscription |
| 1) Fixed fee | £435 | £217.50** | Equivalent to 1.5 hours deducted from your plan |
| 2) Bespoke* | Fixed fee plus £290 per hour for additional work | Fixed fee plus £145 per hour for additional work** | Fixed fee plus additional work deducted from your plan |
| Remodeling & ongoing management | £290 per hour | £145 per hour* | Time spent deducted from your plan |
The costs listed above are exclusive of VAT.
1) Fixed fee – up to 15 shareholders, up to 2 classes of shares, up to one option scheme/pool and Companies
House filings and statutory registers are up to date.
2) Bespoke – more than 15 shareholders, more than 2 classes of shares, more than one option scheme/pool, and
Companies House filings and/or statutory registers not up to date.
**Minus any accrued inclusive support.
*We will estimate any additional work based on the time expected to be taken for reasons why the work cannot be done within the fixed fee.
Why choose our corporate solicitors?
As entrepreneurs ourselves, we understand your situation
Wherever you are in your journey, we’ve got a member of our specialist team who’s been there before. We can offer expert advice and hands-on support to move your company forward. Our objective is to provide legal support to start-ups and SMEs that’s more accessible, affordable, and holistic in approach. We’ll get to know your company goals so that we can apply our legal knowledge and commercial experience to find the best solution and reach the best possible outcome specifically for you.
The vast majority of our experts have been recruited from top 100 UK law firms or in-house from small to large international businesses. Find out more about who you’ll be working with below:
Testimonials
What our clients say
The team provide great support throughout the funding process, providing straightforward and clear guidance on the issues to be addressed at each stage. The team was always at hand to make sure that that we understood what needed to be done to reach a successful outcome.
Chris Evans
CEO,
Kobus Services
It was delightful working with Stephen and Callum on the fundraise. As an ex-investment banker, I’ve worked with many law firms and the legal process can be quite painful. We wanted to make sure our investors were protected and there were no delays with the raise. The fundraise was executed smoothly and Stephen and Callum were both very helpful. Callum was extremely bright. They both pointed out lots of things that we had missed.
Hana Salussolia
Chief Operating Officer,
Medisonal
Harper James provides my small growing business with a scalable, reliable, team-oriented approach to legal advice. Whenever we face a problem, I know that Harper James are there to provide helpful and cost-effective advice, to scope out the options, make clear the costs and risks, and give me the information I need to make decisions.
Bryn Richards
CEO,
Aeristech
As a young and growing fintech company, there have been a number of legal matters that we have needed to manage; such as client contracts, employment contracts and fund raising from investors. We’ve used Harper James for around a year and they have provided us with very valuable support through several lenses, not least in our funding round in late 2017, where we raised £1million and Harper James managed the legal side of the transaction. We recommend them without hesitation.
Gareth Morgan
Chief Risk and Compliance Officer,
Delio
I have worked with Callum Giliker on quite a number of corporate fundraising transactions over the last few years and have always found Callum to take a calm, knowledgeable and productive lead, keeping things as simple as possible.
Matthew Dreaper
CFO,
Oxford Space Systems
The team provide great support throughout the funding process, providing straightforward and clear guidance on the issues to be addressed at each stage. The team was always at hand to make sure that that we understood what needed to be done to reach a successful outcome.
Chris Evans
CEO,
Kobus Services
It was delightful working with Stephen and Callum on the fundraise. As an ex-investment banker, I’ve worked with many law firms and the legal process can be quite painful. We wanted to make sure our investors were protected and there were no delays with the raise. The fundraise was executed smoothly and Stephen and Callum were both very helpful. Callum was extremely bright. They both pointed out lots of things that we had missed.
Hana Salussolia
Chief Operating Officer,
Medisonal
Harper James provides my small growing business with a scalable, reliable, team-oriented approach to legal advice. Whenever we face a problem, I know that Harper James are there to provide helpful and cost-effective advice, to scope out the options, make clear the costs and risks, and give me the information I need to make decisions.
Bryn Richards
CEO,
Aeristech
As a young and growing fintech company, there have been a number of legal matters that we have needed to manage; such as client contracts, employment contracts and fund raising from investors. We’ve used Harper James for around a year and they have provided us with very valuable support through several lenses, not least in our funding round in late 2017, where we raised £1million and Harper James managed the legal side of the transaction. We recommend them without hesitation.
Gareth Morgan
Chief Risk and Compliance Officer,
Delio
I have worked with Callum Giliker on quite a number of corporate fundraising transactions over the last few years and have always found Callum to take a calm, knowledgeable and productive lead, keeping things as simple as possible.
Matthew Dreaper
CFO,
Oxford Space Systems
