A Guide to Understanding Cap Tables
- Adeyemi Adeyemo
- Aug 7, 2024
- 1 min read
A capitalization table, commonly referred to as a cap table, is a crucial document for any startup or venture capital firm. It provides a detailed breakdown of a company's ownership structure, including the equity stakes of founders, investors, employees, and other stakeholders. Understanding and managing a cap table is essential for making informed financial and strategic decisions.
In this guide, we examine the fundamentals of cap tables, their components, and best practices for managing them.
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