Cap Table
Also called Capitalization Table
The record of who owns what in your company: founders, investors, and the employee option pool, share by share and percentage by percentage. It updates every time you raise or grant equity.
Why it matters
A clean cap table is a sign of a company that is easy to invest in. A messy one, too many small holders, odd terms, scares off future investors, so it is worth keeping tidy from day one.
For example
A seed-stage cap table shows the two founders at 40 percent each, angels at 10, and a 10 percent option pool set aside for early hires.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.