Cap Table

Cap Table

A capitalization table (or cap table) is a table providing an analysis of the founders' and investors' percentage of ownership, equity dilution, and value of equity in each round of investment.

All edits

Edits on 30 Oct, 2019
Matt Sweeney
Matt Sweeney approved a suggestion from Golden's AI on 30 Oct, 2019
Edits made to:
Article (+5/-5 characters)
Article

Basic cap tables can be made using software programs such as Microsoft Excel or Google Sheets. These programs are not designed specifically for the creation of cap tables, but can provide enough functionality for creating simple cap tables. For the creation of more advanced cap tables companies will usually choose to use cap table software. There are several companies offering software specifically for the creation of cap tables offering users more control and features when compared to basic spreadsheet software programs. Notable companies offering cap management software include: CapShare, Eqvista, CartaCarta, Gust, Solium, TruEquity, and Captable.io.

Edits on 24 Oct, 2019
Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+154/-43 characters)
Article

Basic cap tables can be made using software programs such as Microsoft Excel or Google Sheets, although. theseThese programs are not designed specifically for the creation of cap tables, andbut can provide limitedenough functionality for creating simple cap tables. For the creation of more advanced cap tables companies will usually choose to use cap table software. There are several companies offering software specifically for the creation of cap tables that giveoffering users more control and features when compared to basic spreadsheet software programs. CompaniesNotable companies offering cap management software include: CapShare, Eqvista, Carta, Gust, Solium, TruEquity, and Captable.io.

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+98/-8 characters)
Article

Cap tables help investors, acquiring companies, and shareholders understand exactly what everyone is getting out of a transaction. Lawyers will often ask companies for their cap tables during an acquisition to help them settle the acquisition dealdeals. Cap tables allow lawyers to have all the information they need in one place for ensuring the company and investors know what they are getting and stay legally compliant such as company transactions, company valuations at various points in time, sale agreements, options agreements, shareholder agreements, and any other information regarding the ownership of the company.

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (-30 characters)
Article

Cap tables include details related to common and preferred equity shares, warrants, and convertible equity. They are commonly used by startups, venture capitalists, and investments bankers to track how equity is diluted between a company's founders and investors during funding rounds. Cap tables allow companies to show the percentages of ownership in a company to investors, and help both parties negotiate funding deals more accurately and efficiently compared to not using a cap table for negotiating funding deals. Startups without cap tables often have difficulties raising money due to a lack of transparency regarding who owns the startup.

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+1 characters)
Article

Cap tables include details related to common and preferred equity shares, warrants, and convertible equity. They are commonly used by startups, venture capitalists, and investments bankers to track how equity is diluted between a company's founders and investors during funding rounds. Cap tables allow companies to show the percentages of ownership in a company to investors, and help both parties negotiate funding deals more accurately and efficiently compared to not using a cap table for negotiating funding deals. Startups without cap tables often have difficulties raising money due to a lack of transparency regarding who owns the startup.

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+1446/-464 characters)
Article

Why use cap tables?

Cap tables include details related to common and preferred equity shares, warrants, and convertible equity. They are commonly used by startups, venture capitalists, and investments bankers to track how equity is diluted between a company's founders and investors during funding rounds. Cap tables allow companies to show the percentages of ownership in a company to investors and help both parties negotiate funding deals more accurately and efficiently compared to not using a cap table for negotiating funding deals. Startups without cap tables often have difficulties raising money due to a lack of transparency regarding who owns the startup.

A company updates their cap table regularly to track how its equity is distributed every time the company sells new shares of existing securities, issues new shares of a security, increases their equity pool, or grants options to employees. Cap tables will also need updating when options expire, investors vest their options, an employee leaving the company terminates their options, or when an existing investor redeems, transfers, or sells their shares.

Compliance
...
Acquisitions and initial public offerings

Cap tables help investors, acquiring companies, and shareholders understand exactly what everyone is getting out of a transaction. Lawyers will often ask companies for their cap tables during an acquisition to help them settle the acquisition deal. Cap tables allow lawyers to have all the information they need in one place such as company transactions, company valuations at various points in time, sale agreements, options agreements, shareholder agreements, and any other information regarding the ownership of the company.

...
Updating cap tables

A company updates their cap table regularly to track how its equity is distributed every time the company sells new shares of existing securities, issues new shares of a security, increases their equity pool, or grants options to employees. Cap tables will also need updating when options expire, investors vest their options, an employee leaving the company terminates their options, or when an existing investor redeems, transfers, or sells their shares.

...

Basic cap tables can be made using software programs such as Microsoft Excel or Google Sheets, although these programs are not designed specifically for the creation of cap tables and provide limited functionality for creating cap tables. There are several companies offering software specifically for the creation of cap tables that give users more control and features when compared to basic spreadsheet software programprograms. Companies offering cap management software include: CapShare, Eqvista, Carta, Gust, Solium, TruEquity, and Captable.io.

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+896 characters)
Further reading (+1 rows) (+5 cells) (+113 characters)
Article

Companies need to make sure they stay compliant with the equity laws of the countries they are operating in. Smaller companies may not need cap tables to ensure they are compliant, but as a company grows and their equity structures become more complex they may choose to create a cap table to stay organized and compliant.

...
Cap table management software

Basic cap tables can be made using software programs such as Microsoft Excel or Google Sheets, although these programs are not designed specifically for the creation of cap tables and provide limited functionality for creating cap tables. There are several companies offering software specifically for the creation of cap tables that give users more control and features when compared to basic spreadsheet software program. Companies offering cap management software include: CapShare, Eqvista, Carta, Gust, Solium, TruEquity, and Captable.io.

Further reading

Title
Author
Link
Type
Date

The Startup Founder's Guide to Cap Tables

Sean Higgins

Web

November 23, 2018

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Documentaries, videos and podcasts (+7 rows) (+21 cells) (+748 characters)
Documentaries, videos and podcasts

Title
Date
Link

"Founders, don't *** up your cap tables!" by Oussama, Founder @The Family

November 30, 2017

[VC Unlocked] Cap Table Management with Carta

November 8, 2018

Cap Table 101 - Understanding Dilution

September 19, 2013

The Art of Startup Finance: Financial Foundations - Your Capitalization Table

November 12, 2014

The Basics of a Capitalization Table

May 18, 2015

Venture Hacks Series A Cap Table

November 25, 2008

WWW: How to Master Your Cap Table

April 4, 2018

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+16/-12 characters)
Article

The ownership section of a cap table details the complete ownership in a company held by all shareholders. It organizes the total capital value, common shares, preferred shares, total shares, and % ownership held by each individual shareholdersshareholder.

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Further reading (+2 rows) (+10 cells) (+280 characters)
Further reading

Title
Author
Link
Type
Date

6 considerations for managing your cap table

Jared Verzello

Web

October 23, 2019

What is a Cap Table - Definition and Overview | Carta

Jenna Lee

Web

October 8, 2019

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Further reading (+4 rows) (+19 cells) (+632 characters)
Further reading

Title
Author
Link
Type
Date

Cap Tables 101: The Startup's Guide to Cap Table Management

Todd Miller

Web

May 19, 2015

Capitalization Table - Guide, Example, Download a Cap Table

CFI

Web

Capitalization Table is a familiar document in the startup world

Investopedia

Web

October 16, 2019

What Is A Cap Table and Why Do You Need One? | Cooley GO

Noah Pittard

Web

June 12, 2014

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+57/-24 characters)
Article

Cap tables include details related to common and preferred equity shares, warrants, and convertible equity. They are commonly used by startups, raisingventure capitalcapitalists, and investments bankers to track how equity is diluted frombetween thea company's founders toand investors during funding rounds.

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+842 characters)
Article

Sections of a cap table
Valuation section

The valuation section of a cap table provides information related to a company's valuation at a given time. Valuation sections will often have multiple sub-sections at different times in a company's life cycle such as the company's value and outstanding shares at the time of receiving funding (seed, series A, series B, etc...). Each sub-section detailing a funding round will contain the total value, price per share, # of shares, and percentage of ownership for the company's pre-money valuation, raised equity, and post-money valuation.

Ownership section

The ownership section of a cap table details the complete ownership in a company held by all shareholders. It organizes the total capital value, common shares, preferred shares, total shares, and % ownership held by individual shareholders.

Dawson Sewell
Dawson Sewell edited on 24 Oct, 2019
Edits made to:
Article (+1185 characters)
Article

A cap table, also known as a capitalization table, is a ledger detailing 100% of a company's shareholders' equity. The cap table provides information regarding the percentage of equity in a company held each individual, and how equity is diluted between the company's founders and the investors. Cap tables can be simple lists of who owns a company's securities, or complex lists containing formulas modelling the distribution of equity in future hypothetical transactions.

Cap tables include details related to common and preferred equity shares, warrants, and convertible equity. They are commonly used by startups raising capital to track how equity is diluted from the company's founders to investors during funding rounds.

A company updates their cap table regularly to track how its equity is distributed every time the company sells new shares of existing securities, issues new shares of a security, increases their equity pool, or grants options to employees. Cap tables will also need updating when options expire, investors vest their options, an employee leaving the company terminates their options, or when an existing investor redeems, transfers, or sells their shares.

Edits on 22 Oct, 2019
Jude Gomila
Jude Gomila edited on 22 Oct, 2019
Edits made to:
Related Topics (+1 topics)
Related Topics
Edits on 1 Jan, 2017
Golden AI"Initial topic creation"
Golden AI created this topic on 1 Jan, 2017
Edits made to:
Description (+193 characters)
Article
Topic thumbnail

 Cap Table

A capitalization table (or cap table) is a table providing an analysis of the founders' and investors' percentage of ownership, equity dilution, and value of equity in each round of investment.

Golden logo
Text is available under the Creative Commons Attribution-ShareAlike 4.0; additional terms apply. By using this site, you agree to our Terms & Conditions.