A capitalization table, or cap table, tells you “who owns what.” A cap table can be summary in nature by grouping all holders into simplified buckets such as “founders” and “investors.” or it may simplify identify how many shares of a given class or series of stock are outstanding without identifying individual holders. Or it may be detailed in nature by providing granular detail on the holdings of each individual holder and each individual type of security. A company should always be able to prepare a detailed, organized, accurate capitalization table. Some early-stage companies, or their counsel, maintain their cap tables in a spreadsheet format, but in recent years many companies have started using third-party software platforms for this purpose.
Last reviewed: April 27, 2021