Capitalization table (or “Cap Table”) allows the shareholders to receive an up-to-date status of their holdings in the firm’s equity. The Table includes the details of all the company’s shareholders and presents information regarding the equity (i.e. segmentation of shares, total number of shares, price per share, etc.). By using the Cap Table, one can manage the company’s profit and holdings distribution while deducting different conclusions about new investor’s policy. In addition, it enables entrepreneurs to run different theoretical scenarios as to the amount (or percentage) of shares they can distribute without deviating from the goals that they have set (for example: keeping control of the company).

 

Example of cap table:

Example of cap table