Primary Cap Table Testing Feedback

# Primary Cap Table Testing Feedback Begin your interview by gathering some information on the interviewee first. You can then present them with the current Cap Table feature, asking them questions about their expectations, motivations, and frustrations along the way... - Build a Cap Table (www.getraise.io) - Prototype ## Ted's Profile: CEO at Carma. **Which Raise archetype is this user?** - [x] Founder/Company - [ ] Investor/Syndicate - [ ] Lawyer/Corp. Secretary - [ ] Employee/Consultant/IC **How familiar does this user consider themselves with Cap Tables** - [ ] Expert - [x] Intermediate - Advanced user - [ ] Some but limited Knowledge - [ ] Novice / First Timer **Are they building a cap table for themselves or for someone else?** - [x] Themselves - [ ] Someone else --- ## Generic Questions **What are their first impressions of the Build a Cap Table feature?** - It did not match all the options they have with their captable - Had to reach out to Samantha for help - Does not cover all regular cases of normal cap tables **Do they find the current design intuitive/easy to use?** - Confusion came about when he logged in, he gets to the user dashboard and when he clicks on his company's name, it does not take him to his fundraising profile - Managing captables in shares is not always regular **How familiar are they with different shareclass options?** - Yes **Would they pay someone to complete this process for them?** - No. **If YES, what would be a reasonable price for this service?** - N/A --- ## Info on their Cap Tables **How many shareclasses do they (their company) have?** - Ordinary shareclasses **How many shareholders does their company have?** - Seven **How many convertible holders does their company have?** - Convertibles is confusing and used it only because they did not want to make a priced round **Do they have Employee Stock Options?** - Yes **Do they have vesting schedules?** - Yes **Are they familiar with incorporation docs and did they find these ok to upload/easy to find?** - No isssues with uploading the documents --- ## Motivations & Frustrations **Was there any particular part of the Cap Table that you enjoyed? And Why?** - Likes the design - Likes that we keep it concise but there was some redundant information **Was there any particular part of the Cap Table that you disliked? And Why?** - It is inaccurate - the amounts - Figure out how to add the vesting schedule **What do you think the ideal flow would be for building a Cap Table?** - None **How would you make this process more intuitive?** - N/A **What is their primary motivation/action when creating a cap table?** - Accounting issue, that is who holds the shares of the company, investors, employees **What did they expect to see/not expect?** - How your shares flow under different options that have been provided - Vesting schedules and other instruments **Please rank these in order of visual hierachy (what they'd expect to see first/last)** - [ ] Incorporation Documents - [ ] Shareclasses - [ ] Shareholders (Equity) - [ ] Convertible Holders (SAFE + DEBT) - [ ] Signatories - No preference but have a single page to have an overview of what is going on. --- ## Other Questions **Do they have any ideas as to how they'd ideally navigate a Cap Table build feature?** - N/A **How would they change the current designs?** - Has feedback but does not remember clearly. **Do they have any feature requests for these pages?** - N/A **Would they benefit from a short product tour to help provide more info and context on building their cap table?** - Yes, for users who do not know how to build the captable. --- ## Reuben's Profile: Reuben Kihiu, CEO Chaji Energy **Which Raise archetype is this user?** - [x] Founder/Company - [ ] Investor/Syndicate - [ ] Lawyer/Corp. Secretary - [ ] Employee/Consultant/IC **How familiar does this user consider themselves with Cap Tables** - [ ] Expert - [ ] Intermediate - [ ] Some but limited Knowledge - [x] Novice / First Timer **Are they building a cap table for themselves or for someone else?** - [x] Themselves - [ ] Someone else --- ## Generic Questions **What are their first impressions of the Build a Cap Table feature?** - It was initially easy to use but it came difficult when it asked to upload the excel/documented cap table - Didn't allow him to add the floating shares- Has only 80,000 and does not include the 100,000 **Do they find the current design intuitive/easy to use?** - The design is okay and clear **How familiar are they with different shareclass options?** - Not very familar, only created one share class option. Looking for a finance person to help him with that **Would they pay someone to complete this process for them?** - No, it doesn't look very complicated if you get the hung on it. Currently they don't have enough runway. - If they had enough money they would pay someone to complete it **If YES, what would be a reasonable price for this service?** - N/A --- ## Info on their Cap Tables **How many shareclasses do they (their company) have?** - Two share classes: common shares and option pools/ Employee stock options **How many shareholders does their company have?** - Four co-founders. With some floating shares and option pools **How many convertible holders does their company have?** - One Angel investor who gave a seed funding to get started. No shares given but given in form of convertible notes **Do they have Employee Stock Options?** - Yes **Do they have vesting schedules?** - No **Are they familiar with incorporation docs and did they find these ok to upload/easy to find?** - Yes, it was quite easy --- ## Motivations & Frustrations **Was there any particular part of the Cap Table that you enjoyed? And Why?** - Not much to it as it was just creating cap tables and allocating shares. - Not exciting just easy to use **Was there any particular part of the Cap Table that you disliked? And Why?** - The system does not recognize the data we put it in as a cap table and kept asking that we upload a spreadsheet cap table **What do you think the ideal flow would be for building a Cap Table?** - First list Shareholders bit. - Get the list total amount of shares of companies and how much each share is work- similar to the Kenyan E-citizen portal - Breakdown of the total shares **How would you make this process more intuitive?** - Create a share class, then allow allocation of shares could be done inside a shareclass **What is their primary motivation/action when creating a cap table?** - A lot of changes coming in the ownership and share allocation and he would like to be able to track it. - Easier to manage the ownership data **What did they expect to see/not expect?** - Did not have an expectation but in terms of the cap table; he did not have an actual documented cap table. - It took him back to doing a spread sheet and his expectation was that Raise was giving them an option of moving away from excel sheets **Please rank these in order of visual hierachy (what they'd expect to see first/last)** - [1] Incorporation Documents - [3] Shareclasses - [2] Shareholders (Equity) - [4] Convertible Holders (SAFE + DEBT) - [5] Signatories --- ## Other Questions **Do they have any ideas as to how they'd ideally navigate a Cap Table build feature?** - Having a cap table template **How would they change the current designs?** - Possibly removing tabs inside a tab- inside the ownswership we have cap table. It took a while to find some data/tab **Do they have any feature requests for these pages?** - None for now **Would they benefit from a short product tour to help provide more info and context on building their cap table?** - Yes, this will be good to give some insights ## Other Notes & Comments If you feel like there are any more questions to be asked, feel free to ask them here... **Question** - Common shares are calculated according to the 80,000. Calulates that as 100% when it should be calculated as 80% --- ## Fane's Profile: Fane is a Legal Engineer/Researcher for Raise. The captable fascinates her, because of how we manage different equities and the deal room simplifies everything. **Which Raise archetype is this user?** - [ ] Founder/Company - [ ] Investor/Syndicate - [x] Lawyer/Corp. Secretary - [ ] Employee/Consultant/IC **How familiar does this user consider themselves with Cap Tables** - [x] Expert - [ ] Intermediate - [ ] Some but limited Knowledge - [ ] Novice / First Timer **Are they building a cap table for themselves or for someone else?** - [x] Themselves - [ ] Someone else --- ## Generic Questions **What are their first impressions of the Build a Cap Table feature?** - It's efficient - you can track down to the last person who you gave your assests to **Do they find the current design intuitive/easy to use?** - Yes for her and no for a client **How familiar are they with different shareclass options?** - Very familiar **Would they pay someone to complete this process for them?** - Yes. **If YES, what would be a reasonable price for this service?** - A company that is constantly fundraising: **Monthly USD 50 - 100** - A company that is in Series A: **Monthly USD 150 - 200** --- ## Info on their Cap Tables **How many shareclasses do they (their company) have?** - N/A **How many shareholders does their company have?** - N/A **How many convertible holders does their company have?** - N/A **Do they have Employee Stock Options?** - N/A **Do they have vesting schedules?** - N/A **Are they familiar with incorporation docs and did they find these ok to upload/easy to find?** - N/A --- ## Motivations & Frustrations **Was there any particular part of the Cap Table that you enjoyed? And Why?** - Creating new features of the captable like debt instruments, promised shares. - Made her understand it in depth **Was there any particular part of the Cap Table that you disliked? And Why?** - Bugs - Slows down process of how the feature should work and going around it to make it work as expected **What do you think the ideal flow would be for building a Cap Table?** - Strategising with legal engineers, technical lead and the client and see how the captable looks like for this client - See if their captable needs match what we currently offer on the platform, then we onboard them, ensuring every share options is on the platform then have the client review **How would you make this process more intuitive?** - Have client share their person who handles their shares classes - Have an educational section explaining what share classes are **What is their primary motivation/action when creating a cap table?** - Figuring out the bugs **What did they expect to see/not expect?** - Expect to see: - structured version of a company's shareholding - Expect not to see: - percentages and values that do not tally with the original documentation shared by clients **Please rank these in order of visual hierachy (what they'd expect to see first/last)** - [1] Incorporation Documents - [2] Shareclasses - [3] Shareholders (Equity) - [4] Convertible Holders (SAFE + DEBT) - [5] Signatories --- ## Other Questions **Do they have any ideas as to how they'd ideally navigate a Cap Table build feature?** - N/A **How would they change the current designs?** - Make it more user friendly and simple as at the moment it is overwhelming. **Do they have any feature requests for these pages?** 1. Debt financing 2. Contigent shares 3. Be able to transfer assests without using documentation 4. Automation of debt instruments 5. ESOPs to be automatically reflected on the captable if employees leave the company. 6. Ease the signing if share certificates. **Would they benefit from a short product tour to help provide more info and context on building their cap table?** - Yes --- ## Patience's Profile: Patience is a Legal Engineer . Motivation is seeing the whole structure in a compressed format, visually attractive and simple to grasp. **Which Raise archetype is this user?** - [ ] Founder/Company - [ ] Investor/Syndicate - [x] Lawyer/Corp. Secretary - [ ] Employee/Consultant/IC **How familiar does this user consider themselves with Cap Tables** - [ ] Expert - [x] Intermediate - [ ] Some but limited Knowledge - [ ] Novice / First Timer **Are they building a cap table for themselves or for someone else?** - N/A --- ## Generic Questions **What are their first impressions of the Build a Cap Table feature?** - Initially it was hard to grasp - The actions were too many and hidden - Would prefer having different share classes separately **Do they find the current design intuitive/easy to use?** - No, it was very confusing **How familiar are they with different shareclass options?** - Yes **Would they pay someone to complete this process for them?** - Yes **If YES, what would be a reasonable price for this service?** - Price depends on the company structure, a lot of shareholders, least price would be **USD 50** - Complex company would be **USD 125** --- ## Info on their Cap Tables **How many shareclasses do they (their company) have?** - N/A **How many shareholders does their company have?** - N/A **How many convertible holders does their company have?** - N/A **Do they have Employee Stock Options?** - N/A **Do they have vesting schedules?** - N/A **Are they familiar with incorporation docs and did they find these ok to upload/easy to find?** - N/A --- ## Motivations & Frustrations **Was there any particular part of the Cap Table that you enjoyed? And Why?** - Adding a new shareholder and creating a new share class - It was a fun and an easy process to do **Was there any particular part of the Cap Table that you disliked? And Why?** - Adding and creating share classes - Acronyms were very confusing **What do you think the ideal flow would be for building a Cap Table?** - Have documents of incorporation, have different personas in different tabs, have all the shareclasses that the company has, have different convertibles debts and notes, have a transfer tab(for shares that have been transferred or pending) **How would you make this process more intuitive?** - Be able to see a visual process of different stages of cap tables - A product tour **What is their primary motivation/action when creating a cap table?** - Being able to see a simplified general overview of a company, diluted shares etc **What did they expect to see/not expect?** - Expect to see: - Captured details of all the members of that company - Minimal difference between what is presented and what is documented - Expect not to see: - Errors and bugs **Please rank these in order of visual hierachy (what they'd expect to see first/last)** - [1] Incorporation Documents - [3] Shareclasses - [5] Shareholders (Equity) - [4] Convertible Holders (SAFE + DEBT) - [2] Signatories - [6] Investors --- ## Other Questions **Do they have any ideas as to how they'd ideally navigate a Cap Table build feature?** - N/A **How would they change the current designs?** - Make it visually aesthetically pleasing, product tours **Do they have any feature requests for these pages?** - Separate view by class and view by stakeholder - Add status tab on shares and instruments e.g pending or complete **Would they benefit from a short product tour to help provide more info and context on building their cap table?** - Yes --- ## Nia's Profile Nia is a Legal Fellow at Raise **Which Raise archetype is this user?** - [ ] Founder/Company - [ ] Investor/Syndicate - [x] Lawyer/Corp. Secretary - [ ] Employee/Consultant/IC **How familiar does this user consider themselves with Cap Tables** - [ ] Expert - [ ] Intermediate - [x] Some but limited Knowledge - [ ] Novice / First Timer **Are they building a cap table for themselves or for someone else?** - N/A --- ## Generic Questions **What are their first impressions of the Build a Cap Table feature?** - It's a clean layout **Do they find the current design intuitive/easy to use?** - It's a good start but not easy for a beginner **How familiar are they with different shareclass options?** - Slightly familiar **Would they pay someone to complete this process for them?** - Yes **If YES, what would be a reasonable price for this service?** - Depends on how big the company is. - Probably pay USD 2,000 - a one time fee --- ## Info on their Cap Tables **How many shareclasses do they (their company) have?** - N/A **How many shareholders does their company have?** - N/A **How many convertible holders does their company have?** - N/A **Do they have Employee Stock Options?** - N/A **Do they have vesting schedules?** - N/A **Are they familiar with incorporation docs and did they find these ok to upload/easy to find?** - N/A --- ## Motivations & Frustrations **Was there any particular part of the Cap Table that you enjoyed? And Why?** - It has a very clean interface. **Was there any particular part of the Cap Table that you disliked? And Why?** - Not much assistance for new people, maybe have a blurb to explain what some terminologies mean - No easy way to export and import cap tables **What do you think the ideal flow would be for building a Cap Table?** - N/A **How would you make this process more intuitive?** - N/A **What is their primary motivation/action when creating a cap table?** - To try and make it as efficient as possible - Verifying that documents provided balance out and check-out **What did they expect to see/not expect?** - Expect to see: - share classes, percentages, who owns the different shareclasses **Please rank these in order of visual hierachy (what they'd expect to see first/last)** - [1 ] Incorporation Documents - [2 ] Shareclasses - [3 ] Shareholders (Equity) - [5 ] Convertible Holders (SAFE + DEBT) - [4 ] Signatories --- ## Other Questions **Do they have any ideas as to how they'd ideally navigate a Cap Table build feature?** - N/A **How would they change the current designs?** - Have an option of importing and exporting cap tables **Do they have any feature requests for these pages?** - Enable uploading of documents and spread sheets - Have an undo option **Would they benefit from a short product tour to help provide more info and context on building their cap table?** - Yes --- # Joseph Profile Legal VC fellow at Raise. Responsibilities include onboarding Companies, issuing SAFE agreements and cleaning up of ownership documentation. Low experience on VC, however has dealt with larger deals such as Mergers and Acquisitions. Also has experience with commercial litigation. **Which Raise archetype is this user?** - [ ] Founder/Company - [ ] Investor/Syndicate - [X] Lawyer/Corp. Secretary - [ ] Employee/Consultant/IC **How familiar does this user consider themselves with Cap Tables** - [ ] Expert - [X] Intermediate - [ ] Some but limited Knowledge - [ ] Novice / First Timer **Are they building a cap table for themselves or for someone else?** - [ ] Themselves - [X] Someone else --- ## Generic Questions **What are their first impressions of the Build a Cap Table feature?** Very good - served as an introduction to Cap tables. The interface is simple, but remains comprehensive in terms of differing scenarios with Cap Tables, so far. Deal room simulation is great. **Do they find the current design intuitive/easy to use?** Yes. Appreciated graph visualization, and navigation **How familiar are they with different shareclass options?** As a lawyer, he is familiar with different shareclass options **Would they pay someone to complete this process for them?** Founders would have prefer having someone walk them through it or do it for them. **If YES, what would be a reasonable price for this service?** Joseph would charge per hour. This covers different cases of cap table complexity. With straight forward and simple captables, $10 would suffice. However hourly payments would cover time required for complex captables. --- ## Info on their Cap Tables - N/A **How many shareclasses do they (their company) have?** Answer here... **How many shareholders does their company have?** Answer here... **How many convertible holders does their company have?** Answer here... **Do they have Employee Stock Options?** Answer here... **Do they have vesting schedules?** Answer here... **Are they familiar with incorporation docs and did they find these ok to upload/easy to find?** Answer here... --- ## Motivations & Frustrations Here is where we want to get an idea of what motivates the user in this part of the platform and what actions they want to take. **Was there any particular part of the Cap Table that you enjoyed? And Why?** - Simple yet omprehensive UI - Simulating deal rounds is great - Auto generate share certificate is good - simple and straight forward. - Functionality allowing for different types of share certificates per shareholder is really well done - Vesting element is very interesting - no other tool allows for vesting terms. Would usually have to be doen manually. **Was there any particular part of the Cap Table that you disliked? And Why?** - Ownership of subsidiaries could not be set to 100%, was forced to set it to 99% - Creating, editting and deleting share classes is tricky, the form could be broken up and paginated to walk user through each section. - Adding docs automatically to the cloud works well apart from where the same document needs to be uploaded in 2 places, meaning the cloud drive displays duplicates. The upload modal should show the document already uploaded where necesary **What do you think the ideal flow would be for building a Cap Table?** Current flow makes sense, starting with company details, then incroporation details, stakeholder details, ownership details (including shareholding, setting convertibles and vesting schedules) **How would you make this process more intuitive?** Very straight forward - drafting SAFE agreements etc is whats difficult, but thats off platform. He had to clean them up. Explainers could be useful. **What is their primary motivation/action when creating a cap table?** N/A **What did they expect to see/not expect?** Expected to see - search function - ability to visualise all companies as an investor Didn't expect - Documents section (cloud fodler for all the documents, financial information, etc) - Members profile (where stakeholders including secretaries and lawyers could be added) **Please rank these in order of visual hierachy (what they'd expect to see first/last)** - [1] Incorporation Documents - [4] Shareclasses - [2] Shareholders (Equity) - [3] Convertible Holders (SAFE + DEBT) - [5] Signatories --- ## Other Questions **Do they have any ideas as to how they'd ideally navigate a Cap Table build feature?** Relatively intuitive right now. A way to visualise ownership across previous rounds would be helpful **How would they change the current designs?** - Having companies list upfront on the dashboard - Allow for interaction between platform members. Allow investors to showcase themselves, and founders to showcase their companies when fundraising. This functionality could be extended to lawyers, consultants and so on. **Do they have any feature requests for these pages?** - Search functionality for all data points across a certain company - UI customisation - dark mode, swatches, etc - Mobile functionality for certain features **Would they benefit from a short product tour to help provide more info and context on building their cap table?** Will get back to us on that with potential screen recordings --- ## Other Notes & Comments If you feel like there are any more questions to be asked, feel free to ask them here... Stresses the value of building interaction features. --- ## Eddy Profile Spent 4 years at Fuzu going through 2 rounds of dund raising including a Series A raise. **Which Raise archetype is this user?** - [X] Founder/Company - [X] Investor/Syndicate - [ ] Lawyer/Corp. Secretary - [ ] Employee/Consultant/IC **How familiar does this user consider themselves with Cap Tables** - [ ] Expert - [X] Intermediate - [ ] Some but limited Knowledge - [ ] Novice / First Timer **Are they building a cap table for themselves or for someone else?** - [ ] Themselves - [X] Someone else --- ## Generic Questions **What are their first impressions of the Build a Cap Table feature?** - Platform is slick, good first impression, As we continue to develop, it will be very strong value add - No differentiating factor compared to competitors - Lots of things that were not explained or explained fully, e.g. ParValue, no explanation of what it is which can be difficult for first time founders - Actual induction is not really present - Platform not intuitive Flow - It wasnt explained what each step was - e.g. Step one, here you're difing share c;ass, - are you a first time founder, read xyz first, or do you have an existing cap table. You're goign to use Raise once you already have a share structure and want to raise funds - Step 2 - assign share to people - Flow that he went through **Do they find the current design intuitive/easy to use?** No. Several features were frustrating to find and use and doesnt flow through natural thinking patterns. For example, captables are read line by line, hence we read them as shareholder -> shares. Creating shareclasses then assigning shareholders on a whole separate page was not intuitive. Process should follow from current working methods. user faced similar intuition issues with setting vesting shcedules and cliffs Flow is ok, information is not there exaplingin the flow and what needs to be done at each step. Usually people build line item by item. **How familiar are they with different shareclass options?** User has a high level of familiarity with shareclass options, but does not have exhaustive knowledge. Suggested that explaining this and providing advice on how to structure a cap table could be part of Raise's value add. **Would they pay someone to complete this process for them?** Yes, mainly because he doesnt want to make a mistake, hence would pay for high levels of accuracy **If YES, what would be a reasonable price for this service?** Based on the value of his own time - would take expect to take 3-4 hours to set up captable. Whatever time he saved here, he'd be willing to pay someone else. Expects that cost to be in the low $100s. --- ## Info on their Cap Tables **How many shareclasses do they (their company) have?** 4 **How many shareholders does their company have?** 5 **How many convertible holders does their company have?** 1, and 15 other option holders **Do they have Employee Stock Options?** Yes **Do they have vesting schedules?** Yes **Are they familiar with incorporation docs and did they find these ok to upload/easy to find?** N/A --- ## Motivations & Frustrations Here is where we want to get an idea of what motivates the user in this part of the platform and what actions they want to take. **Was there any particular part of the Cap Table that you enjoyed? And Why?** Answer here... **Was there any particular part of the Cap Table that you disliked? And Why?** Having to fill out Shareclass information without adding shareholders. No explanation of the flow of processes, didnt know that a redirect would occur to a page where shareholders would be created and assigned to shareclasses. **What do you think the ideal flow would be for building a Cap Table?** Line by line - i.e. adding shareholders and shareclasses should almost happen simultaneously **How would you make this process more intuitive?** Line by line - i.e. adding shareholders and shareclasses should almost happen simultaneously **What is their primary motivation/action when creating a cap table?** N/A **What did they expect to see/not expect?** N/A **Please rank these in order of visual hierachy (what they'd expect to see first/last)** N/A - [ ] Incorporation Documents - [ ] Shareclasses - [ ] Shareholders (Equity) - [ ] Convertible Holders (SAFE + DEBT) - [ ] Signatories --- ## Other Questions **Do they have any ideas as to how they'd ideally navigate a Cap Table build feature?** - N/A **How would they change the current designs?** - Typeform contains too many specific and subjective questions. Founders providing answers to these questions are inherently biased, and will not provide accurate answers. Questions such as "is your business scalable" cause the typeform to loose credibility, founders expect their businesses to be scalable, else they would not be looking at producst like Raise. **Do they have any feature requests for these pages?** - Should be clear which form fields need to filled. Placeholder text is too dark, so hard to differentiate from typed text. Unfilled mandatory fields should be better displayed. Reasons why forms could not be submitted were never displayed. User shouldn't have to figure out what needs to be filled and why a form can or cannot be submitted. **Would they benefit from a short product tour to help provide more info and context on building their cap table?** - Massively. Complex terminologies and processes are difficult to understand and the product should act as both a cap table management tool and cap table education tool. Technical details and flow both need to visualised, possibly by video or prompt or otherwise. This can be shown or hidden depending on whether the user claims he's a first time founder or not. --- ## Other Notes & Comments If you feel like there are any more questions to be asked, feel free to ask them here... - N/A ---