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 included in a 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.

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)

How do you make a capitalized table?

How to Make a Cap Table

1. Authorized shares: Number of shares the company is allowed to issue.
2. Outstanding shares: Number of shares held by all shareholders in the company.
3. Unissued Shares: Number of shares that have not been issued.
4. Shares reserved for stock option plan: Unissued shares reserved for future hires.

What is Cap list?

A “Cap Table” is a list of Your Company’s Securities. At its most basic level, a cap table is just a list of your company’s securities (i.e., stock, options, warrants, etc.) and who owns those securities.

Is a cap table confidential?

A capitalization table is always considered when making financial decisions that have an impact on market capitalization and on the market value of the company. With so many people having access to the cap table, it poses a security risk for highly confidential business information.

Should employees see cap table?

Cap tables help maintain the calculation of market value. Employees holding shares can see their value in real-time. A historical insight into cap tables provide a sense of the business health and could provide the much needed competitive advantage at attracting investors.