Cap Table
Definition
Cap Table: A capitalization table (cap table) is a spreadsheet or database showing the equity ownership of a company, including shares held by founders, employees, and investors. It tracks all equity instruments including common stock, preferred stock, options, and convertible notes.
Example Usage
“Before our Series A, we cleaned up our cap table to clearly show ownership percentages for due diligence.”
Common Misconceptions
Related Terms
Dilution
Dilution occurs when a company issues new shares, reducing existing shareholders' ownership percentage. In each funding round, founders and early inve...
Option Pool
An option pool is a portion of company shares reserved for future employee equity grants. Investors typically require a 10-20% option pool before inve...
Vesting
Vesting is the process by which employees earn their equity over time. The standard vesting schedule is 4 years with a 1-year cliff, meaning no equity...
SAFE
A SAFE (Simple Agreement for Future Equity) is an investment contract that gives investors the right to receive equity in a future priced round. Creat...
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