What Is a Cap Table?

In raising funding, investors will ask for a cap table.

Cap Table stands for Capitalization Table and is a document that tracks the capital structure of the company. In essence, it shows who owns how much of the company’s equity.

So, a company that has had multiple rounds of funding will have different investors in those rounds of funding (seed, angel, Series A, B, C…etc.), which needs to be kept in one place.

For presentation purposes, the Cap Table typically gives a high-level summary of the current percent ownership by each investor.

As the company plans future fundraising, the Cap Table shows the impact of those raises on the investors’ ownership. Current investors will have lower percent ownership but should make up for it in an increased valuation.

Cap Tables include convertible debt, options, and warrants as well as equity. If an investor asks for a “fully diluted” Cap Table, then all of these are added to the calculation.

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