[QuotaWiki] Capitalization Table (Cap Table)

Capitalization Table


🙋 What is a cap table?

A capitalization table (or cap table) provides an analysis of the ownership of all the securities your company has issued. It includes each stakeholder’s percentage of ownership, types of securities, equity dilution, and value of equity in each round of investment. Cap table helps private companies to calculate their market value, especially when making financial decisions involving equity ownership, and market capitalization.

🙋 What should be included in a cap table?

  • Names of shareholders
  • Types of shares issued
  • Number of shares issued
  • Number of stock options
  • Total number of outstanding shares
  • Number of remaining shares available to be issued
[Cap Table at a glance]

🙋 When is a cap table most needed?

  • Raising investments: New investors are interested in seeing how the company’s ownership is structured and how their investment affects the company.
  • Selling the company: The cap table lays out how much each shareholder receives from the proceeds and in what order.

🙋 How can I better manage my cap table?

Many startups often use spreadsheets for cap tables. Excel is a good tool when you have a simple capital structure and a small number of stakeholders. However, when the business grows it becomes difficult to keep every data up-to-date on a spreadsheet. After multiple funding rounds, the cap table becomes more complex but tracking the data on your spreadsheet does not scale as your company does. Eventually, you need a tool to streamline your cap table management and this is when a tool like QuotaBook becomes handy. Let’s schedule a demo to discuss your needs and show you how we solve them.

Make equity simple with QuotaBook - QuotaBook is a SaaS-based equity management solution for both Startups and Venture Capital funds. Startups and VCs can sync crucial equity-related data such as cap tables, employee stock options as well as investor updates so that every stakeholder can communicate on a single source of truth. QuotaBook is the No. 1 equity management software for startups in Korea, trusted by 2,500+ startups & VCs and backed by more than 20 VC funds.

Disclaimer: This piece is written for information purposes only and is not intended as financial or legal advice. QuotaBook does not assume any reliability for dependence on the information provided above.

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