How do you present a cap table?

The cap table should be designed in a simple and organized layout that clearly shows who owns certain shares and the number of outstanding shares. The most common structure is to list the name of investors/security owners on the Y-axis, while the type of securities is listed on the X-axis.

What do investors look for in a cap table?

Loners. The Cap Table shows how much capital investors contributed and who owns which percentages. Investors like to see a complete team with long term incentives to stick with the business. The less equity the team has or the more unevenly distributed ownership is, the greater the risk.

What is a cap table template?

A capitalization table, or “cap table” for short, is a list of a company’s securities (common stock, preferred stock, convertible notes, SAFEs, options, warrants, etc.) and who owns those securities.

Are Cap tables public?

There’s no legal requirement to share your cap table with employees, however companies typically give senior management (e.g. CFO, COO, CTO) visibility. However, cap table visibility for employee owners is a little bit like making salaries public.

Should I ask for a cap table?

There’s no legal requirement to share your cap table with employees, however companies typically give senior management (e.g. CFO, COO, CTO) visibility. If your employees have a stake in the business through shares or options, it makes sense to give them a degree of cap table visibility.

What is a messy cap table?

A messy cap table is generally everything except the above. But, there are some common errors that we see in the market: AD. Remove this ad space by subscribing.

How do you calculate cap table dilution?

So let’s look at the formula:

1. You gross up the 10\% ESOP you need post raise by dividing it by 1 less the 25\% investor stake.
2. Then you deduct the ESOP you already have which is 10\%.
3. Now, since the ESOP top up is going to dilute you before the investment, you also gross up the top up the amount by 10\%.