Short for capitalization table. The record of who owns what in a company, including founders, investors, employees with options, and any other shareholders. Investors scrutinize this before investing.
Why it matters
Your cap table is the single source of truth for ownership. Investors ask for it first. Errors delay or kill deals. Every equity decision you make requires an accurate one. A messy cap table signals a messy company.
How it works
A cap table lists every shareholder, what type of equity they hold, how many shares, and their ownership percentage. It starts simple (just founders) and gets more complex as you add employees with options, advisors, SAFEs, and investors. At a minimum, it should show fully diluted ownership, meaning all outstanding shares plus all options, warrants, and convertible instruments as if they were converted. For example, a seed-stage company might have two founders with common stock, three employees with options, and two investors holding SAFEs that will convert at the next priced round.
Learn more
- What Is a Cap Table
- What Investors Look for in Cap Tables
- Converting a Dynamic Split to a Fixed Cap Table
Related terms
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