At its most basic level, a cap table is just a list of your company’s securities (i.e., stock, options, warrants, etc.) and who owns those securities. The capitalization table or cap table is key to a startup and should be understood and managed accordingly. You’ll need to define a contract that you can offer to all your initial advisors. In order to get an investor – whether angel or VC – you have to prepare a cap table that shows your view of what rounds of financing you think you’ll need and what value the company will be at when you raise the money.
I sometimes hate raising money because of all the shifty things investors try to do to fuck founders on the cap table instead of trying to look for terms that benefit both sides and the company. Capitalization table: read the definition of Capitalization table and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary. Definition of capitalization table: Summary of the securities issued by a firm, it shows the types of the securities with their dates of issue and the amount obtained from each type.
A table showing the capitalization of a firm, which typically includes the amount of capital obtained from each source – long-term debt and common equity – and the respective capitalization ratios. Cap Table, table displaying the capitalization of a company which usually includes the amount of capital acquired from each source and the respective capitalization ratios; total amount of the different securities that a company securities issued and includes the amount of investment acquired from each source and the securities distributed. Capitalization Table is a table that shows all the securities issued by a firm. The table shows various securities issued by a firm, and the owner of those securities.
Cap Table Definition
The Capitalisation table, or Cap table for short, is a table that presents a view of all of the shareholders of a company and their percentage of equity. Get the full definition and learn more here. 5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. It is less about actual money and more about structure of your Cap Table. Both Sides of the Table. Hwang on how VCs calculate valuations and he’s created a cap table spreadsheet you can download from DocStoc to plug in all of the terms and you can watch the video here and/or read the text summary below. Let’s suppose your pre-Series A cap table looks like this:. Among them is the definition of an investment company under the Investment Act of 1940, which has ensnared startups trying to use special purpose vehicles (SPVs) in crowdfunding efforts as a way to keep their capitalization tables clean. The simple solution is to define this clearly up front. This is part of a free Cap Table University series we’ve created covering many of these issues enjoy, and please feel free to request a topic if we are missing anything.