What is a capitalization table or cap table?

A capitalization table, or cap table, tells you who owns how much of which types of stock in your company.  Venture Hacks has an excellent educational blog post on how to make cap tables, together with a simplified template. Fred Wilson of Union Square Ventures has an equally excellent educational blog post with a second template for the cap table.

For a light hearted treatment of this very dry topic, read this highly entertaining 2017 TechCrunch article  by Jason Rowley titled "Cap tables, share structures, valuations, oh my! A case study of early-stage funding. This is a parable about a fictional Silicon Valley startup called "Internet of Wings" and follows them through an initial seed round and a Series A raise. 

Use these readings to learn the basics - and when the time comes to raise your first round of financing, work with a lawyer to construct your first cap table to ensure everything is in order.


Was this article helpful?
0 out of 0 found this helpful

      This website and all posts and content are intended for educational purposes only and for no other purposes. This website does not and is not intended to provide legal, financial or tax related advice. Although we take great care to make sure that all of our information is accurate and useful for it intended educational purposes, if you have a specific issue for which you need actionable advice, please come to the Martin Trust Center in person to speak to one of our Entrepreneurs in Residence (EIR) or consult a licensed attorney or other professional. Despite the backgrounds and qualifications of our staff, mentors, lecturers, authors, EIRs and speakers no attorney-client, advisor, or other confidential/privileged relationship exists or will be formed between you and the Martin Trust Center or the Massachusetts Institute of Technology. Under no circumstances should any content be relied upon in making any decisions that could have any financial or legal impact(s).
Have more questions? Submit a request


Powered by Zendesk