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 investment, understanding a 'cap table' helps investors see their stake in a company. An investor might analyze, 'I reviewed the cap table to determine my percentage of ownership before investing further.'

Practice Scenarios

Creative

Scenario:

With the option pool creation for new hires, we need to understand the exact dilution impact on existing shareholders.

Response:

Let's update our cap-table. We need a clear picture of how this affects our current and future shareholders.

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.