Cap Table
Also known as: Capitalization Table
A spreadsheet or document showing the equity ownership of a company, including all shareholders and their percentage ownership.
Full Definition
The capitalization table (cap table) records all equity holders — founders, employees with options, investors, and convertible note/SAFE holders — and their ownership percentages on a fully diluted basis. Cap tables become complex as companies go through multiple funding rounds and issue options. A well-managed cap table is essential for fundraising (investors review it before investing), M&A (acquirers require it for due diligence), and employee equity management.
Example
Before their Series A, the founders review their cap table: Founder A 35%, Founder B 35%, Seed investors 20%, Option pool 10%. The Series A term sheet requires a 15% option pool expansion before close, which the founders negotiate to come from pre-money valuation rather than their own holdings.