Cap Table (Capitalization Table)
A spreadsheet or table that shows the equity capitalization of a company, detailing ownership percentages, equity dilution, and value of equity in each round of investment.
Definition
A capitalization table is a detailed breakdown of a company's shareholders' equity. It shows who owns what, how much they own, and how ownership percentages change over time through funding rounds, employee option grants, and other equity events.
Key Information Tracked
- • Shareholder names and types (founders, investors, employees)
- • Number of shares owned by each party
- • Ownership percentages on fully-diluted basis
- • Type of securities (common stock, preferred stock, options)
- • Purchase price and dates of issuance
- • Option pool allocation and vesting schedules
- • Liquidation preferences and conversion rights
Real-World Example
Post-Series A Cap Table: Founders 60%, Series A investors 25%, Employee pool 15%
The cap table shows how ownership was diluted from founders' initial 100% to accommodate new investors and employee incentives.