What is a Consolidated Cap Table?
Consolidated cap tables allow companies to more easily manage their thousands of investors. This type of cap table allows multiple shareholders to be treated as a single holder of record and occupy one line item on the cap table as opposed to thousands of individuals, and allows them to more easily collect investor information.
This service is managed via StartEngine Secondary, so investors in any company using a consolidated cap table will be required to open an investment account at checkout if they do not already have one.
This type of cap table greatly simplifies accounting, legal and communication activities that relate to investors. For example, should they need to issue tax documents to their investors, the information they would need to collect, such as SSNs and residential addresses, is already securely collected through the process of opening the Secondary account.