• Cap table management is one of the biggest challenges for any entrepreneur, particularly those considering whether or not to conduct a public listing.

  • Even with cap table management software, the process can be slow, opaque, and above all, costly.

  • A new Security Token Offering (STO) platform from Blockstation could change that, leveraging the blockchain to simplify and streamline cap table management for companies of all sizes.


By: Jai Waterman, Chief Enterprise Architect

Cap table management is one of the biggest challenges for any entrepreneur, particularly those considering whether or not to conduct a public listing. Even with cap table management software, the process can be slow, opaque, and above all, costly.

Until now.

At Blockstation, we believe in the power of the blockchain to transform, streamline, and simplify all aspects of listing a publicly traded asset for companies of all sizes - including cap table management. The good news is, that transformation is already here.

Welcome to the world of Security Token Offerings (STOs) through Blockstation.

Why good cap table management matters

Cap tables are complex. They’re not just a record of your company’s transactions, but living, breathing documents that need to track many types of information such as:

  • Exercises of options

  • Conversion of debt into equity

  • Cancellations

  • Transfers

  • Sales

  • Stock issuances (including fundraising rounds, equity, and various exit values)

It’s not easy. Cap table management software can help, but there’s only so much it can do when the entire system is flawed at a fundamental level.

Currently, cap tables operate on out-of-date information and are anything but transparent. A simple-seeming task like generating a report of your shareholder demographics can be shockingly difficult, relying on a costly transfer agent to connect with multiple parties, including the stock exchange and a vast network of broker-dealers, in order to track down consolidate every piece of the puzzle.

Not only is this inconvenient and expensive, but it’s slow - meaning the information issuers receive is often out of date. This lack of real-time data actually exposes your company to real business risks, including:

  • Limited understanding of “typical shareholder” profile

  • Ensuring your shares are not over- or under-subscribed

  • Delayed awareness of share movement, leaving you vulnerable to surprise takeover bids

It’s time for a better option.

The blockchain can transform cap table management

One of the most powerful features of the Blockstation STO platform is that it integrates every player in the financial ecosystem - stock exchanges, broker-dealers, depositories, transfer agents, and issuers - and enables them to share vital data to the blockchain in real time.

The result is a fully compliant, tokenized public offering that is not just faster and more efficient than a traditional Initial Public Offering (IPO), but dramatically improves transparency and efficiency for cap table management as well. With real-time access to critical information about market participants  and trading activity, both issuers and regulators will see benefits including:

Issuers

  • Fast, efficient, cost-effective cap table management 

  • Real-time access to anonymized shareholder demographics, enabling targeted recruitment of new investors and more effective shareholder communications

  • Real-time share activity reports to identify trends and potential business risks

  • Faster, more efficient, and less costly shareholder votes

  • Streamlined equity management and dividend/royalties payments

Regulators

  • Fast, accurate and timely submissions and reports from issuers

  • Enhanced ability protect issuers and traders from illicit trading activities

  • Safer, more efficient markets

Real, live STOs are already happening

And Blockstation is at the forefront of this revolution, working with regulated financial institutions and ambitious, innovative issuers to list the world’s first STOs on a major national stock exchange later this year.

We truly believe in the power of STOs to spur innovation, drive competition, and create new investment opportunities on regulated, trusted financial markets. Are you an issuer interested in conducting an STO?

Are you a regulator or stock exchange Interested in learning more about STOs?

The Blockstation team is here to answer any questions you have. Email sto@blockstation.com to get started.