Cap Tables

- Spreadsheets that detail the ownership structure of a company, including equity stakes, options, and convertible securities.

Scenario:

A venture-backed startup is raising a Series C round. The VC firm reviews the company’s cap table to assess dilution and investor rights.

Why This Matters:

Shows ownership, option pools, liquidation preferences, helps understand dilution, control, and exit outcomes.

The Process:

The VC’s analysts model post-money ownership and potential outcomes under various exit scenarios.