November’s edition of Pitch Friday was held last Friday, November 11, 2022. After some delay, we started by 5 pm with a session on how startups should handle their cap tables. Kingsley Anyanwu, a Business Development lead at Raise, handled the session, explaining why cap tables are essential, the dangers of having a messy cap table, and how Raise can help founders organise their cap tables.
Some highlights
A cap table is a spreadsheet that lists all of a startup’s investors, how much equity they hold, and how much they paid for it. Cap tables are extremely valuable when a company is being sold or seeking investment but could also be helpful when hiring.
A messy cap table could deter potential investors, cost the startup money in legal fees, or worse, see the founder lose control of their company.
Side note: A messy cap table is one that contains information that concerns an investor.
Cap tables are not an issue for founders who have yet to raise any funds. However, Anyanwu pointed out that they must pay attention to it immediately after they start raising funds, even if the funds are from family members or friends.
Accelerating financial inclusion through KoinsandKash
Oluebube Nwosu, the team lead at KoinsandKash, pitched the startup – a marketplace for financial services, after which attendees spent some time networking with each other. December's edition of Pitch Friday is just around the corner. Stay tuned for more details.
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