The Capitalisation (CAP) table refers to an organized list of all stakeholders and their respective stakes in the company. This sheet clearly lists all founders, investors, directors, and employees who own shares and voting rights. Likewise, it gives a transparent picture of who owns how much by including share prices.
Cap table also breaks down the structure of share capital into equity, preferential shares, warrants, convertible debt, etc. An accurate Cap table helps us in fundraising strategies and other financial decisions like IPO s and M&As. Moreover, it is the most effective tool for analysis by VC s and also for tax compliance.
Our mentor Sharda Balaji walks us through details of Cap table. She also explains how it affects business decisions. Sharda is primarily a lawyer and CS, and founder of law firm NovoJuris. Apart from that she also donned roles of legal counsel, founder, angel investor, Independent director, and trustee.
This video is part of the Start-up 101 series, containing a wide range of Q AND As. We have got you covered with basics in form of FAQ s answered by Founders and CEOs themselves. Also, we have unraveled almost everything from investing, hiring to valuation. Our goal is to provide A to Z solutions to these hurdles and boost the confidence of novice entrepreneurs.
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