What is a Cap Table?
A capitalization table (cap table) is a record of all shareholders in a company, including founders, employees, and investors, along with their ownership percentages.
Key Components
- Shareholders: Who owns equity
- Share Classes: Common, preferred, options
- Number of Shares: How many each person holds
- Ownership Percentage: Relative stake
- Share Price: Current valuation per share
- Options Pool: Reserved for employees
Why It Matters
- Required for fundraising
- Determines control and voting rights
- Affects exit proceeds distribution
- Guides employee compensation decisions
Managing Your Cap Table
- Keep it updated after every transaction
- Model future dilution scenarios
- Understand liquidation preferences
- Plan option pool before fundraising