Education SAAS Case Study


Freeing up your time and resources while ensuring quality investor relations 

You have secured investors. Now, how do you deal with the CAP tables and investor relations?



There are many fantastic TED talks on how education is changing at a revolutionary pace. Almost all touch on some form of technology advancement which is acting as an underpin to this movement. 

Incredible organizations like Kahn Academy are bringing high quality, free digital education to children all over the world. If you examine Universities, all allows students to take classes online. The busy single dad that could not have feasibly fit in the traditional school commute can now take classes while at work and conduct group study over Skype.

Recently, a SAAS based education content company forwarded an email from one of their investors. The investor wanted to know when her loan would convert to stock. The founders didn’t have a good answer, and it got them thinking about more of their own questions: 

  • How do we value the company? 
  • Do we need to report anything to the government?
  • Will the second round of financing dilute the founders’ ownership? 

It’s a complicated problem filled with legal pitfalls. We solved the problem by pouring over the prospectus, legal documents, personnel records and bookkeeping. From that, we prepared a CAP table and set up the accounting so that we can see ownership percentages and requirements, throughout time. We then helped coach the founders on the status of ownership and how to handle investors. We filed all applicable reports with the government and helped with a valuation.

The investors were very pleased with the company’s professional handling of their investor reporting responsibilities. The founders were quoted saying that it has helped increase their chances of closing a second round of financing. 

SoftwareCPAs is the first CPA and Consulting firm exclusively servicing the technology industry  (Biotechnology, Chemical, Digital Marketing, E-Commerce, Information Technology, Pharmaceuticals, Robotics and Software).  

We provide real, specialized value helping our clients scale faster. 

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