You know what a cap is, and what a table is, but what is a cap table? A capitalization table, commonly known as a cap table, is a document that shows the equity capitalization for a company. A cap table is most commonly utilized for startups and early-stage businesses, but all types of companies may use it as well. In general, the capitalization table is an intricate breakdown of a company's shareholders' equity.
Cap tables often include all of a company's equity ownership capital, such as common equity shares, preferred equity shares, warrants, and convertible equity.
Learn more about cap tables from a founder and the importance of maintaining a clean cap table in the video below and solidify your understanding with a knowledge check here.
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Brent Devey
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