Astrella Blog

By Angela Vuong, Support Manager

Author: Paul Arens, Head of Business Development and Partnerships

Capitalization tables (or cap tables) provide an analysis of a company’s percentages of ownership, equity dilution, and value of equity in each round of investment by founders, investors, and other owners. Developing a cap table and making related decisions can be complicated and overwhelming. Failing to have a clear picture of your company’s share ownership is equivalent to mismanaging company finances. Without a detailed view of who owns what it’s impossible to understand your current and future positions. Many startups create cap tables using spreadsheets, which is ok (but still not ideal) when there are only 2 or 3 owners, but this doesn’t scale. Depending on which study you read, those spreadsheets contain mistakes 70-95% of the time.

Blockchain Fundamentals

Many people confuse blockchain technology with cryptocurrencies like Bitcoin. It’s an easy mistake to make so let’s distinguish between the two. Think of blockchain as the operating system providing the means to record and store transactions while Bitcoin is a digital security tracked on the application using blockchain technology.