Cap Table (Capitalization Table)
A cap table is a spreadsheet or document that shows the equity ownership structure of a company, including all shareholders, their ownership percentages, and the types of securities they hold.
What Is a Cap Table?
A capitalization table (cap table) details who owns what in a company. It lists every shareholder, their share class, number of shares, ownership percentage, and any dilution from options or convertible instruments.
What a Cap Table Includes
Why Cap Tables Matter
1. Fundraising: Investors review the cap table before investing
2. Equity compensation: Determines how much of the option pool is allocated
3. Exit scenarios: Models who gets paid what in an acquisition or IPO
4. Tax planning: Equity structure affects tax treatment for founders and employees
5. Governance: Voting rights and board seats depend on ownership
Simple Cap Table Example
| Shareholder | Shares | Type | % Ownership |
|---|---|---|---|
| Founder A | 4,000,000 | Common | 40% |
| Founder B | 3,000,000 | Common | 30% |
| Seed Investor | 2,000,000 | Preferred | 20% |
| Option Pool | 1,000,000 | Reserved | 10% |
| Total | 10,000,000 | 100% |
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