Introduction to Captable AI

Captable AI is designed to streamline and simplify the management of capitalization tables (cap tables) for startups and private companies. A cap table tracks the ownership stakes of a company, including shares held by founders, investors, employees, and other stakeholders. Captable AI’s core purpose is to automate complex tasks such as equity allocation, scenario modeling, and stakeholder management. This makes the process of updating, maintaining, and simulating changes to a cap table faster, more accurate, and accessible to non-experts. Captable AI's design is centered around automating manual processes—such as extracting key information from documents (e.g., Articles of Incorporation) or calculating dilution in different investment scenarios. Through its AI-powered interface, it can assist users in understanding the effects of funding rounds, employee stock option plans (ESOPs), and equity distribution, with minimal manual input. This allows companies to stay compliant with regulatory standards, manage equity efficiently, and plan for various funding or exit scenarios. For example, if a company is about to issue new shares to investors during a Series A round, Captable AI can calculate the impact on founder ownership, simulate post-money valuations, and generate insights into dilution levels. This is particularly useful for startup founders, who may not be familiar with financial modeling but need to understand how different investment terms (e.g., SAFEs or convertible notes) affect their stake in the company.

Main Functions of Captable AI

  • Automated Document Processing

    Example Example

    Captable AI can extract details such as company name, date of incorporation, and authorized shares directly from uploaded documents like Articles of Incorporation or Investor Agreements.

    Example Scenario

    A founder uploads their Articles of Incorporation, and Captable AI automatically populates the cap table with details on share classes and founder ownership without manual entry.

  • Equity Allocation Management

    Example Example

    Captable AI helps manage different equity pools such as founder shares, employee stock options, and investor stakes, including complex vesting schedules and employee grants.

    Example Scenario

    After a funding round, a company wants to issue new stock options to employees. Captable AI assists in allocating these options, tracking vesting periods, and updating the cap table to reflect changes in ownership.

  • Scenario Modeling and Dilution Analysis

    Example Example

    Users can simulate future fundraising rounds, stock option exercises, or exit events to see how these changes will affect ownership percentages and company valuation.

    Example Scenario

    A startup founder is planning a Series B funding round and wants to understand how issuing preferred shares to investors will dilute their ownership and impact existing shareholders. Captable AI models the impact of different funding terms (e.g., post-money valuation, investor preferences) on all stakeholders.

Ideal Users of Captable AI

  • Startup Founders

    Captable AI is particularly useful for early-stage startup founders who need to manage equity stakes between co-founders, investors, and employees. Founders often lack the financial expertise to maintain an accurate and up-to-date cap table manually. With Captable AI, they can automate the process of entering shares and generating investor-ready reports, ensuring they are prepared for future funding rounds and legal compliance.

  • Investors and Advisors

    Investors and advisors who manage portfolios of startups or provide strategic financial advice benefit from Captable AI’s scenario modeling and simulation tools. They can use these functions to evaluate potential returns, analyze dilution from future funding rounds, and advise companies on optimizing their equity structures. This is particularly valuable for understanding the financial health and future viability of a startup before making investment decisions.

How to Use Captable AI

  • 1

    Visit aichatonline.org for a free trial without login; no need for ChatGPT Plus or registration.

  • 2

    Upload your cap table documents (e.g., Articles of Incorporation, SAFE agreements). Captable AI will automatically extract key details to pre-fill your cap table.

  • 3

    Verify the extracted information and input any missing data manually, such as stakeholder details and share classes.

  • 4

    Utilize the scenario modeling feature to run simulations on different equity outcomes (e.g., new funding rounds, employee stock options).

  • 5

    Export your updated cap table in various formats, or integrate with platforms like Fairmint for advanced features such as SEC-compliant transfers.

  • Data Extraction
  • Scenario Modeling
  • Cap Table
  • Equity Structuring
  • Investor Tracking

Frequently Asked Questions about Captable AI

  • What makes Captable AI different from other cap table management tools?

    Captable AI leverages artificial intelligence to automatically extract data from documents, minimizing manual input and reducing errors. It also offers scenario modeling and can integrate with platforms like Fairmint for seamless equity management.

  • Can Captable AI handle complex equity structures?

    Yes, Captable AI is designed to handle a variety of equity structures, including multiple share classes, SAFEs, convertible notes, and stock options, making it suitable for startups and more established companies.

  • Is Captable AI secure for sensitive financial data?

    Captable AI prioritizes security by using encryption and adhering to industry-standard security practices, ensuring that your sensitive financial data and cap table information are well-protected.

  • Does Captable AI offer features for scenario modeling?

    Yes, one of Captable AI’s key features is scenario modeling, allowing you to simulate different fundraising rounds, employee stock option pools, and dilution scenarios to see the impact on ownership.

  • Can I export my cap table to other platforms?

    Yes, you can easily export your cap table in multiple formats like Excel or Open Cap Table format, and you can also integrate with platforms like Fairmint for enhanced functionality.

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