Shareholder Services: Transfer Agent for Capital Raise

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What is a Transfer Agent?

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Typically a transfer agent is a company responsible for maintaining investor financial records and account balances for shares and security ownership. The transfer agent will record transactions, cancel and issue certificates, process investor communications, and handle a host of other investor problems, including reissuing lost or stolen certificates. Transfer agents work closely with registrars to ensure investors receive their due interest and dividend payments in a timely manner.

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Traditionally, a transfer agent would be managing a public company’s books and records of shareholders.  

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However; all capital raises require this service as you will be selling a security type in order to raise capital - and the Transfer Agent will keep record of that value exchange with your investor pool.

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Why Do You Need a Transfer Agent?

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Before most TAs were digital, the time, labor, and systems infrastructure required to maintain your own company register didn’t make good economic sense. Maintaining system access to central depositories, paying a dividend, doing tax reporting and remitting, fielding shareholder inquiries, all the associated AML and compliance reporting – is too big of an operation. It requires a significant back office managing it; therefore, the vast majority of companies hire an experienced transfer agent that not only knows the compliance and legal obligations, but has automated digital processes to fulfill on them.

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As you embark on raising capital, you’ll need to keep a close eye on your records of ownership - also called a cap table in the startup world.

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What is a Cap Table?

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A cap table is most commonly utilized for startups and early-stage businesses but all types of companies may use it as well. In general, the cap table is an intricate breakdown of a company’s shareholders’ equity. Cap tables often include all of a company’s equity ownership capital, such as common equity shares, preferred equity shares, warrants, and convertible equity.

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It shows the total market value of a company and its components, and is a key point of reference for business managers. It is important for the cap table to be accurate, customized to the business needs, and regularly maintained for decision-making based on the most current information.

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What is Different About DealMaker Shareholder Services?

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We’ve Made it Easy to Raise Capital Online by Providing Full-Service

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When you raise capital via Reg A, Reg CF, Reg D506, Reg S (or any exemption in Canada), be rest-assured that our Shareholder Services will manage the back-office for your company: we can oversee the investor certificates, records, and accounts for you digitally and integrated with your raise.

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If you are interested in a Private Placement or a Warrant exercise, our Shareholder Services are there as well to help manage the books and records either for a singular deal or overall for your company.

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Our team of experts are here to help answer any questions you may have, so please don’t hesitate to reach out at any time.

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We’re here to help.