Cap Table

A capitalization table (cap table) is a detailed record of a company's equity ownership structure. It shows every shareholder, their share types (common, preferred, options), and their percentage ownership. The cap table evolves with every funding round, option grant, and equity transaction.

Cap tables start simple (founders splitting equity) and become complex as the company raises multiple rounds, creates option pools, issues warrants, and grants equity to employees. Software tools like Carta, Pulley, and AngelList Stack help manage cap table complexity.

A clean, well-maintained cap table is essential for fundraising, M&A, and IPO preparation. Investors will scrutinize the cap table during due diligence to understand ownership dynamics, identify potential conflicts, and evaluate their expected returns.