Corporate FinanceFinancial Glossary
Cap Table (Capitalization Table)
Definition
A spreadsheet or table that shows the equity ownership structure of a company, listing all shareholders, the number and type of shares they hold, and their ownership percentage. Cap tables track common shares, preferred shares, ESOPs, convertible notes, warrants, and SAFEs, and show how ownership changes with each funding round.
Why It Matters
A clean cap table is critical for raising venture capital. Investors examine the cap table to understand existing ownership distribution, founder dilution, and the presence of unusual provisions. Founders who give away too much equity early (below 50% by Series A) face reduced control and motivation problems. Cap table management tools like Carta or Trica Equity are now essential for Indian startups.