Technology Due Diligence

Capitalization Table

Acronym : Cap Table

The cap table lists all of a company's shareholders and their share of the capital, including dilutive instruments (stock options, convertible notes), at a given point in time.

Why it matters

A poorly maintained or inconsistent cap table is one of the most common red flags during due diligence, as it can hide unanticipated dilution commitments.

Concrete example

Before a funding round, a startup updates its cap table to include every option grant made since the last round.

Related notions

DilutionShareholdingConvertible instruments

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