Legal & Equity
Cap Table
Also Known As
Capitalization TableOwnership Table
A cap table (capitalization table) is a detailed spreadsheet or ledger that lists all shareholders in a company, the types of equity they hold, their ownership percentages, and how ownership changes over time.
What is a Cap Table?
The cap table is one of the most important documents for any startup. It tracks who owns what, and how ownership changes through funding rounds, employee grants, and other equity events.
Cap Table Components
- Shareholders: All equity holders
- Share Classes: Common, preferred, options
- Share Counts: Number of shares per holder
- Ownership %: Percentage of total
- Investment Amount: Capital contributed
- Vesting Status: Vested vs unvested
Cap Table Events
- Founder equity grants
- Option pool creation
- Funding rounds
- Employee option grants
- Secondary sales
- Convertible note conversions
- Warrant exercises
Cap Table Tools
- Carta: Industry standard platform
- Pulley: Modern alternative
- Shareworks: Enterprise solution
- Spreadsheets: Early stage (not recommended)
Studio Considerations
Venture studios must carefully track:
- Studio equity across portfolio
- Founder equity splits
- Option pools for employees
- Dilution through funding rounds
Example Usage
“Before the seed round, the lawyers requested a clean cap table showing all shareholders.”