What is a Cap Table?

A Cap Table (short for Capitalization Table) is a detailed spreadsheet or document that outlines the ownership structure of a company. It shows who owns how much equity, how that ownership is distributed across shareholders, and how it may change over time with funding rounds, option grants, or exits.

Key Elements:

  • Shareholder names

  • Number and type of shares owned (common, preferred, options, warrants)

  • Percentage ownership

  • Valuation history and share price per round

  • Convertible notes or SAFEs (Simple Agreements for Future Equity)

Example:

A startup’s cap table after a seed round might look like:

  • Founders: 60%

  • Investors: 30%

  • Employee Option Pool: 10%

Why It Matters:

  • Essential for investor negotiations and due diligence

  • Used to calculate dilution during new fundraising rounds

  • Helps founders and boards track ownership stakes, voting rights, and exit payouts

  • Vital for option pool management and employee equity plans