A cap table, also known as a capitalization table, is a spreadsheet or table that outlines the equity ownership structure of a company. It lists all the different types of securities issued by the company, such as common stock, preferred stock, warrants, and options, and shows who owns how much of each security.
A cap table is an essential tool for both the company and its investors, as it helps to keep track of the ownership and value of the company. It also helps to calculate the dilution of current shareholders, which occurs when new shares are issued.
Cap tables can be very complex, especially for companies that have raised multiple rounds of funding or have issued a range of different securities. As such, it is important to keep them up-to-date and accurate, as they form the basis for important decisions such as equity financing, mergers and acquisitions, and IPOs.
In summary, a cap table is a crucial document that helps to keep track of a company's equity ownership structure and is an essential tool for both the company and its investors.
When managing your cap table through the Optio platform, you have everything you need to stay fully compliant, have complete control and always be ready for fundraises or investor due diligence.