A capitalization table, or cap table, is a structured record that outlines the ownership stakes, equity dilution, and value of shares in a company. A cap table typically lists all shareholders—including founders, investors, and employees with equity—and details the type and quantity of securities they hold, such as common shares, preferred shares, options, or convertible instruments. It also tracks changes in ownership over time, including financing rounds, stock option exercises, or transfers. Cap tables serve as an essential tool for decision-making, particularly during fundraising, mergers, or acquisitions, where clear insight into equity distribution is critical. They allow founders and stakeholders to understand dilution effects and valuation impacts of new investments. Professional investors and legal advisors frequently rely on accurate cap tables to verify ownership structure, negotiate terms, and ensure compliance with corporate governance. Digital platforms have increasingly automated cap table management, offering real-time updates, scenario modeling, and integration with legal documentation to reduce complexity and human error.

Contexts

• #startup-lexicon (See: @Startup Glossary)