Startup Funding Espresso -- What Is a Cap Table?
What Is a Cap Table? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, investors will ask for a cap table. Cap table stands for Capitalization Table and is a document that tracks the capital structure of the company. In essence, it shows who owns how much of the company\u2019s equity.So, a company that has had multiple rounds of funding will have different investors in those rounds of funding (seed, angel, Series A, B, C...etc.), which needs to be kept in one place.For presentation purposes, the cap table typically gives a high-level summary of the current percent ownership by each investor.As the company plans future fundraising, the cap table shows the impact of those raises on the investors\u2019 ownership. Current investors will have lower percent ownership but should make up for it in an increased valuation. Cap tables include convertible debt, options, and warrants as well as equity. If an investor asks for a \u201cfully diluted\u201d cap table, then all of these are added to the calculation. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Please , share, and leave a review. Music courtesy of .