Capitalization table («Cap Table»)
What is a cap table?
A cap table or capitalization table is a financial tool that shows how the ownership and capital of a company is divided among the partners, investors and employees of a company.
It provides details about who the partners or shareholders are, how many shares or interests they own and the type, and the percentage of ownership of each. It also records relevant transactions that affect the shareholding structure, such as financing rounds.
The cap table is a very useful tool for managing company capital, planning financing rounds, negotiating with investors, and evaluating the impact of strategic decisions. The cap table must be updated and transparent, to avoid confusion and conflicts among shareholders.