What is a Cap Table and why is it important for startups?

A Cap Table, or Capitalization Table, is a spreadsheet or table that shows the equity ownership capital breakdown of a company, including the percentage of ownership, equity dilution, and value of equity in each round of investment by founders, investors, and other owners. It is important for startups as it provides a clear picture of the company's ownership structure and how it changes with each round of funding. It helps in decision-making regarding equity distribution and investment rounds.

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To explore how you can establish a founder-first company, we will use a template we've created for you. This tool visualizes how a company's control changes over time through a Timeline tab. You'll also find a Dashboard in the template that shows the evolution of ownership structure between investors and founders. The template breaks down investment rounds from Pre-seed to Series C and incorporates a variety of investment tools, including SAFE notes and Convertible notes.

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Cap Table

Ever wondered why some companies stay under the control of their founders, while others shift into the hands of their investors? Our Cap Table Templat...

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