A cap table, or capitalization table, is a spreadsheet that details a company's ownership percentage and equity value among founders and investors. It serves as a snapshot of all shareholders, ensuring accurate tracking of shares held and includes elements like equity ownership and potential funding sources. Effective management of a cap table is crucial for businesses, and tools like Equa can simplify this process.

1. What is a Cap Table?
By: Renae Deiter with Equa

2. What is a Cap Table?
Cap Tables or “capitalization tables,” are a spreadsheet or digital table
that highlights a company’s ownership percentages, level and value of
equity for founders, investors, and other owners involved in investment
rounds.

3. The Purpose of a Cap Table
The purpose of a Cap Table is to provide a snapshot of all of the
shareholders and security holders of a business. This tally is designed
to ensure that the share count of a business or enterprise is equal to
the total number of shares held by investors and other security
holders.

4. Cap Tables will Include:
When a business is starting out
it’s Cap Table will include:
● a record of all equity
ownership capital including
common and preferred equity
shares and pricing
● convertible equity
● and warrants.
A more in-depth table might
integrate elements such as:
● new funding sources
● public offerings
● mergers and acquisitions
● and other sorts of enterprise
related transactions.

5. Updating your Cap Table
Because companies are in a constant state of evolution and flux,
traditional ways of ensuring that cap tables are continuously updated can
be quite involved, particularly if it involves a large scale, rapidly growing
business. The issuance of new securities, option pool increases, or the
granting of options to employees is among the many events that can
trigger a change to a capitalization table.

6. Managing your Cap Table with Equa
Cap Table management is essential to every business. Equa can make
managing you Cap Table easy and save a lot of time and money. With
all your documents in one place updating and tracking records has
never been easier.
To learn more about Equa and sign up for a free trial, please visit us at
managecaptable.com