What is a cap table?
What is a cap table? I've never heard the term before. What does it consist of? What components?
What is a cap table? I've never heard the term before. What does it consist of? What components?
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It's usually used for private companies, especially VC-backed startups with many different investors and rounds of investments.
It shows you how much each investor owns in the company, and what types of securities they own - common stock, preferred stock, options, warrants, etc.
In banking and PE, it is most often used in a Flow of Funds model to show how much each investor / owner would earn if the company were sold for a certain amount.
So a typical cap table might consist of:
-List of employees with the amount of common stock and options (along with the strike prices for the options) they each own.
-List of investors and the securities they own, whether it's preferred stock, common stock, options, warrants, or other less common types. Again, the key data is the quantity and then the exercise price (for options/warrants).
Cap tables can get quite complicated depending on the company, but those are the basics.
Usually you would use a cap table to establish a per-share purchase price for the company, and then plug that data into the table to calculate how much each entity that owns part of the company would earn in a sale.
Perfect. Thanks.
For us, a cap table is just a simple table that shows how the company was funded...basically, a breakdown of the company's debt and the book equity for total book capitalization.
Same for us...
Dosk's explanation is good
we also refer to our cap table or cap structure as a simple breakdown of debt and equity
Never heard of dosk's type of cap table. For us, it's the same as killscallion's description.
the same for us, simple breakdown
Think of it as the 'uses' of sources and uses.
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