Financial Foundations: Your Capitalization Table

07/28/2016 04:05 to watch
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The details of the Shareholders Equity section of your Balance Sheet are shown in your Capitalization Table, which is maintained as a separate report. The “Cap Table” shows how much of the company each shareholder owns, and in what form — common stock, preferred stock, options, or warrants. Investors will want to look at your cap table to understand how you have distributed your common stock and how you have raised investment capital.

Questions for You

What does our cap table say about how we have distributed equity across our team?

What does our cap table say about how much of the company we’ve had to give up to raise money?

Questions for Your Team

Are we using stock options effectively to keep our team motivated?

Tools and Exercises

Complete your capitalization table.

Keep it up to date.

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