Cap table / Capitalisation table

The "cap table" is a clarifying statement that reveals which player currently owns the company's ownership stake. The capitalisation table is typically prepared for early-stage startup companies, but it can also be useful in other cases.

A "cap table" usually exists in the form of an Excel spreadsheet. Its purpose is that, in the case of multiple owners, even after new transactions, it is possible to track who has what share and ownership in the company.

The "cap table" often includes a list of different ownership shares, types of shares (such as preferred dividend or priority shares), guarantees and transferable ownership shares.

Such a statement can be critically important for financial decision-making. This table is also necessary in order to determine the ownership structure and market capitalisation of the given company. In the case of companies that have not been unlisted on the stock exchange, such as startups, the market value of the company can be determined and monitored. The existence of this table is important not only for the preparation of owner reports, but also for the preparation of new venture capital investments.

In the case of a startup, the purpose of the table is for the owners and potential investors to agree on the future: to avoid that someone buys the same amount of shares at a higher price, or that an early investor's investment is "dilute" after newer rounds of investors.

A basic capitalisation table lists all existing share types, individual and institutional investors, and shares prices. A more complex table may also include potential new sources of capital, merger and acquisition plans, plans related to the initial public offering and other theoretical transactions, as well as the impact of the above on the existing shareholder structure.

The capitalisation table is typically not a public document. Only those concerned have access to it, but data such as total market value is often published from it. The document is used as a reference and taken into account for all financial decisions that have an impact on the valuation of a business/company. Therefore, it is particularly important that the table is always accurate and up-to-date, and that it fits the business needs of the given company. 

Although there are good practices, the "cap table" has no established standard form. In all cases, companies create a structure that is simple, clear, easy to use and easy to maintain for the company. 

Typically, a list of shares owners is placed on the y-axis, and the type of shares is placed on the x-axis. All properties of a given investor are listed in one row. 

The sequence, however, variable. There are places where the list starts with the with the founders and the shareholders follow each other according to the time order of the investment. In other cases, the list is based on the size of the investment, here the largest shareholders come first. The list is also influenced by the goals of the company: for example, whether they are currently preparing for a venture capital investment, acquisition or issuance of shares for employees.