A cap table, or capitalization table, is a spreadsheet that shows the equity ownership of a company. It can help in retaining control of a company by providing a clear picture of who owns what percentage of the company. This allows the founders to make informed decisions about equity distribution and dilution, helping them maintain control during funding rounds and potential acquisitions.

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Some best practices for maintaining an updated cap table include: keeping it simple and organized, regularly updating it after every financial event such as funding rounds or stock option grants, ensuring accuracy by double-checking calculations and entries, using cap table management software for efficiency, and seeking legal advice to ensure compliance with laws and regulations.

A cap table, or capitalization table, is a spreadsheet or table that shows the equity capitalization for a company. It provides a detailed record of all the company's securities and who owns them, including equity shares, preferred shares, options, warrants, etc. It helps in understanding the equity distribution in a company by showing the percentage of ownership, equity dilution, and value of equity in each round of investment by founders, investors, and other owners.

Some tools to create and manage a cap table include Captable.io, Carta, and Gust Equity Management. These tools provide features for cap table management, scenario modeling, and equity plan administration.

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Cap Table

Ever wondered why some companies stay under the control of their founders, while others shift into t...

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