A capitalization table (or “cap table”) is a list of all the securities your company has issued and who owns them. Securities include stock, convertible notes, warrants, and equity grants.
What is a good cap table?
A good cap table has the following characteristics: The CEO (original founder) owns the most. The founders own as much as possible. There are no investors on the cap table that have a bad reputation, or maybe a potential conflict in future (Some corporates)
What is a cap table template?
A capitalization table, or “cap table” for short, is a list of a company's securities (common stock, preferred stock, convertible notes, SAFEs, options, warrants, etc.) and who owns those securities.
What is a cap table example?
The capitalization table shows each investors' equity capital stake in the business, which is calculated by multiplying the share price by the number of shares owned. For example, startups run several funding rounds to support capital needs. They also issue stock options to attract talent.
What is meant by cap table?
A capitalization table (or “cap table”) is a list of all the securities your company has issued and who owns them. Securities include stock, convertible notes, warrants, and equity grants. Here's what you need to know.
What is cap table for a startup?
A capitalization table, also known as a cap table, is a spreadsheet or table that shows the equity capitalization for a company. A capitalization table is most commonly utilized for startups and early-stage businesses but all types of companies may use it as well.
How do you make a capitalized table?
- Names of shareholders: The names of shareholders who have bought shares in the company.
- Shares owned by each shareholder: The number of shares held by each shareholder.
- Stock options: Stock options owned by each shareholder.
What should a cap table include?
In general, the capitalization table is an intricate breakdown of a company's shareholders' equity. Cap tables often include all of a company's equity ownership capital, such as common equity shares, preferred equity shares, warrants, and convertible equity.
How do you present a cap table?
The cap table should be designed in a simple and organized layout that clearly shows who owns certain shares and the number of outstanding shares. The most common structure is to list the name of investors/security owners on the Y-axis, while the type of securities is listed on the X-axis.
What investors look for in a cap table?
- Breaks. Cap tables containing so many investors that the table requires page breaks are a red flag for most investors.
- Loners. The Cap Table shows how much capital investors contributed and who owns which percentages.
- Impossibles.
- Favorites.
What should I look for in a cap table?
A separate table in the capitalization table should include the following: Names of shareholders: The names of shareholders who have bought shares in the company. Shares owned by each shareholder: The number of shares held by each shareholder. Stock options: Stock options owned by each shareholder.
What do investors look for in a cap table?
At a basic level, investors want to ensure that their interests are aligned with those of the founding team. The more potential upside that the team has, the more motivated they will be. And investors also want to make sure there's enough equity left over to bring in new investors in later rounds.