A cap table, short for capitalization table, is a spreadsheet or document that displays the ownership structure of a company and lists all of its securities, such as common stock, preferred stock, warrants, and options. The cap table shows who owns what percentage of the company Cor Opera, the price they paid for their shares, and any relevant terms and conditions attached to their ownership.
Cap tables are typically used by startups and private companies to keep track of their ownership structure as they issue new equity or debt securities, and as their company grows and evolves. They are also used by investors to evaluate the ownership structure and potential return on investment of a company they are considering investing in.
Some of the key elements of a cap table include:
- The names and percentage ownership of each shareholder, including any employees, founders, and investors.
- The types of securities each shareholder owns, such as common stock, preferred stock, or options.
- The number of shares outstanding, or the total number of shares that have been issued by the company.
- The fully diluted ownership percentages, which takes into account any potential future dilution from things like options, warrants, and convertible securities.
- The valuation of the company, which is used to determine the price per share and the overall value of each shareholder’s stake in the company.
Overall, cap tables are a valuable tool for both companies and investors to keep track of ownership and to make informed decisions about future investments and fundraising.
