A cap table, short for “capitalization table”, is a document that provides an overview of a company’s equity ownership structure. It lists all the company’s securities, such as ordinary shares, preferred shares, options, warrants, and other equity instruments, along with the ownership percentages and the names of the individuals or entities that hold these securities.
Here are some key elements typically included in a cap table:
A cap table is a critical tool for founders, investors, and company management to understand the ownership structure, equity distribution, and potential dilution of ownership over time. It plays a crucial role in fundraising, mergers and acquisitions, and other corporate transactions, as it helps stakeholders assess the impact of new investments or changes in ownership on existing shareholders.
As a company evolves and raises additional funding rounds or issues new equity incentives to employees, the cap table may need to be updated regularly to reflect these changes accurately. Proper management and maintenance of the cap table are essential for transparency and effective corporate governance.
ProSec can provide you with a Cap Table that is easy to use and update to reflect any future fundraisings or changes to the capital structure. The Cap Table will be provided in Excel format that you can then share with your shareholders or potential investors.
If this is something you need, please contact us and we would be happy to help you.