cap-table

Vocabulary Word

Definition

'Cap-table' is a detailed chart that breaks down a company's ownership. It shows the percentage of ownership, equity dilution, and value of equity in each round of investment by founders, investors, and employees.

Examples in Different Contexts

In legal contexts, a 'cap table' is essential for compliance and governance. A lawyer specializing in corporate law might advise, 'Ensure your cap table is up-to-date to avoid legal complications during fundraising.'

Practice Scenarios

Impact

Scenario:

The new grant proposal changes the monetary distribution structure of our non-profit organization, requiring reevaluation.

Response:

We should use a cap-table to fairly distribute the shares. This will help us understand the impact of new grants on existing structure.

Tech

Scenario:

We should review the dilution of shares for the founding team and future employees. It's important to align incentives for everyone involved.

Response:

True, managing this in a cap-table can help us visualize how shares would dilute in different scenarios.