Glossary Terms

capitalization table

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A capitalization table, commonly referred to as a cap table, is a table, spreadsheet, or database that reflects the equity ownership structure of a company.

A cap table should lists all shareholders, the types and numbers of shares they own, and their respective ownership percentages. A “fully diluted” cap table should also list all holders of stock options, warrants, and other rights to acquire stock, like convertible notes and Safes.

Cap tables are essential for startups and private companies to track ownership stakes, manage equity dilution, and make informed financial decisions. They are particularly useful during fundraising, mergers and acquisitions, and other corporate transactions.

A simple cap table can be maintained in an Excel table or Google Sheet. But at some point most startups will use cap-table management software like Carta.