What is a Cap Table?

A capitalization table, or “cap table,” is a financial tool that lists the ownership stakes in a company, including the equity and debt held by shareholders, employees, and other investors. The cap table also shows the value of each ownership stake and the percentage of ownership each stake represents.

The cap table is an important tool for managing the financial and ownership structure of a company, as it provides a clear overview of the company’s ownership and equity distribution. It is commonly used by startups and other companies with multiple owners or investors to track the issuance and sale of equity and debt, as well as to evaluate potential financing and exit strategies.

The cap table can be a complex document, and it is important for companies to keep it up-to-date and accurate to ensure compliance with relevant laws and regulations and to make informed financial decisions.

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