Cap Table

Definition

A cap table (short for capitalization table) is a document or spreadsheet that lists every person and entity that owns equity in your company, along with the type of security they hold (common shares, preferred shares, options, warrants, convertible notes) and their ownership percentage.

At its simplest, a two-founder company's cap table might show: Founder A owns 60% and Founder B owns 40%. As you raise money, issue options to employees, and bring on advisors, it gets more complex — but the purpose stays the same: a single source of truth for ownership.

Why It Matters

Every major decision involving money eventually touches the cap table. Raising a round? The cap table determines how much you get diluted. Hiring a key employee with equity? The cap table shows what's available in the option pool. Selling the company? The cap table dictates who gets paid and how much.

A messy cap table — one with missing records, improperly documented grants, or forgotten convertible notes — can kill a deal. Investors and acquirers will walk away from a company that can't clearly document who owns what. The legal costs of cleaning up a bad cap table can run $50K-$100K or more.

Example: A startup has two founders (70/30 split), raised a $500K seed round on a SAFE at a $5M cap, and has a 10% option pool. Before the SAFE converts, the founders own 90% and the option pool is 10%. After the SAFE converts at the next priced round, those percentages shift significantly. If the founders don't model this out, they're surprised by how much dilution they've taken.

What It Typically Includes

• Shareholder names: Every person and entity with ownership
• Share classes: Common, preferred (Series A, B, etc.), and their different rights
• Number of shares: How many shares each holder owns
• Option grants: Unvested and vested employee options
• Convertible instruments: SAFEs, convertible notes, and warrants that will become equity
• Ownership percentages: Both fully-diluted (including all options and convertibles) and basic

How CentSight Helps

CentSight gives you a clear view of your cap table alongside your financial data. See how ownership connects to financial outcomes — when you model a future raise, CentSight shows the dilution impact alongside your burn rate and runway, so you can make funding decisions with full financial context. Ask “If we raise $2M at a $10M pre-money, what does our cap table look like?” and see the answer instantly.