Cap Table

Business Finance

A capitalization table (cap table) is the spreadsheet showing all owners of a company and their respective ownership percentages, share classes, and rights. Tracks founders' equity, employee options, investor stakes, convertible securities. Becomes increasingly complex through funding rounds — multiple preferred share classes (Series A Preferred, Series B Preferred), various liquidation preferences, anti-dilution adjustments, employee option grants. Modern cap table software (Carta, Pulley) automates management. Founders should obsess over the cap table — every funding round dilutes existing shareholders; ill-structured early rounds (excessive convertible notes, friendly-fire valuations) can leave founders with negligible ownership at exit despite years of work.