In a bid to connect with high growth startups before they make a decision about going public, the Tel Aviv Stock Exchange (TASE) has launched Cap.TAble. An accounting software package, Cap.TAble assists firms to monitor their cap tables.
Cap tables are used by startups to keep track of ownership in the company, including details of shares owned by stakeholders such as founders, employees, external investors and advisors. As different share classes entail different rights such as governing dilution and liquidation, cap table software include features to analyze how different events will effect shareholders. In addition to companies using such software to monitor ownership, cap table software is also used by investors and lawyers to forecast deals and manager portfolios of investments.
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For the TASE, the launch of Cap.TAble is a means to connect them with startups before they go public. With this partnership, the TASE aims to position themselves as a potential source to gain this business when a decision is made about an IPO. The offering is being made available to founders initially for free in a freemium model to attract startups. The importance of attracting startups occurs as Israeli firms have been shunning the TASE for their IPOs in favor of the NASDAQ or the LSE’s AIM market.
Commenting on the launch, Yossi Beinart, CEO of the TASE, stated, “Following a strategic plan that was presented earlier this year, we are making our first steps to appeal to private companies. The ability to use Cap.TAble is part of an overall process to expand tools for companies.” Beinart added “We are opening up our doors to private companies”.