A cap table illustrates the ownership structure of a company by showing who owns what percentage of shares. It accounts for shares held by founders, investors, and any unissued shares such as option pools. The document provides an example cap table for Airbnb when it was founded, showing the three founders each owned 1,000 shares (33.33% each). It then demonstrates how the cap table would change after a new funding round, with the founders' ownership decreasing and new investors each receiving shares worth their investment amount.
A cap table illustrates the ownership structure of a company by showing who owns what percentage of shares. It accounts for shares held by founders, investors, and any unissued shares such as option pools. The document provides an example cap table for Airbnb when it was founded, showing the three founders each owned 1,000 shares (33.33% each). It then demonstrates how the cap table would change after a new funding round, with the founders' ownership decreasing and new investors each receiving shares worth their investment amount.