As published by Protocol on July 27, 2021.

In an industry first, leaders from across the entrepreneurial ecosystem have come together to create a group called the Open Cap Table Coalition to improve the interoperability, transparency, and portability of start-up capitalization table (cap table) data.

“Everything that happens that is a sexy thing that's important to the tech world, it really is something having to do with the cap table,” said David Wang, Wilson Sonsini's chief innovation officer.

Though keeping cap table records is a fundamental task for every company, there has been no standard of how to maintain one, with start-ups often relying on a combination of spreadsheets, law firms, and stock management companies to keep track, until now.

In its launch, the coalition announced that it has established a first iteration of the Open Cap Table Format, an open source format to enable a new, more collaborative era in capitalization data management that aims to prioritize companies' changing needs and help the ecosystem become more efficient.

"I really think that this has the potential, and I'm going to do my work to make it happen, to be a generational change in terms of how this industry works," David said. "And I think that the impact is going to be significant."

The coalition includes software providers LTSE Software, Carta, and Morgan Stanley's Shareworks, alongside a who's-who list of tech law firms: Gunderson Dettmer, Latham & Watkins, Orrick Herrington & Sutcliffe, Cooley, Fenwick & West, Goodwin Procter, and the aforementioned Wilson Sonsini.

The original announcement by the coalition can be read on Medium. Further coverage can be found at TechCrunch.