Cap table modeling is a simple and effective method of finance and economics. Modeling of capital transactions with one-off payments, allows for complete control of capital. Cap table management deals with the financing of small cap companies. A cap table is used to represent the partial shares of the cap value of a company. This is represented numerically. The model involves three important parts:

Modeling a cap table involves three major parts. Legal agreements and work flows for cap raising is featured. Share certificates are usually used. In addition, it also deals with the maintenance of a list of internal and external cap table models for clients. An external lookup table is also required and a standard format of the type is also used by most firms.

Most firms involved in cap table modelling usually use standard expressions for equity plans and share certificates in their models. The expressions may be different than those used in the actual markets. startups may differ as well. This is because the modelling involves complex transactions with complex participants.

Most firms involved in cap table modelling usually have a practice of developing their own legal agreements, rather than using the standard expressions used in the industry. When these firms need to add new terms into the models, they do so, but they usually write the agreements first, and then modify them later as appropriate. Once the new model is ready, it is usually deployed for production on an existing cap table. The development of legal agreements and related works normally takes some time. It is worth remembering that during this time period, no changes are made to the equity plans or share certificates that are in use in the model.

Another aspect of cap table modelling deals with how to represent multi-language grant agreements. There are typically startups of models in use. In some cases, the documents must be prepared in a language other than English. In other instances, the documents may be prepared in a number of other languages, so that they can be read in the intended languages by potential participants. Some firms involved in the industry also deal with documents in several languages.

A key part of the industry involves the service team involved in the development of the models. The service team can write the grant agreements, and prepare the technical specifications. The service team may also be involved in the technical translation of the documents, as well as the creation of digital signatures. If the digital signature is recognised by the participant, the individual can access the share certificate or the book of deeds electronically.

The details of the process are difficult to describe. However, to get a better understanding of the process, it is useful to understand the typical scenario of a cap table. At startups of the project, a senior manager will decide which currencies and products to include in the model portfolio. In addition, the programme will also consider the performance of the chosen domestic and global micro and macroeconomic indicators. Once startups have been made, a contract will be established with an investment bank or investment management firm, and a digital signature will be created.

As part of the Cap Table Modeling / Custom Report process, this signature is attached to an XML document. The document is sent to a recipient using either an email or a fax. From here, it can be converted into a portable document format, to be used for the preparation of the customised equity reports and the submission of the forms to the appropriate departments. This ensures that all the necessary information is included.