Hidden Cap Table Secrets


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Hidden Cap Table Secrets


Let’s begin with the basics — capitalisation tables (a.k.a cap tables) track ownership in the company’s share capital. They aren’t just used to track percentage holdings, they reflect share classes. Employees and founders typically hold common shares; investors typically get preferred shares. Cap tables also reflect how the proceeds of an exit (called a “liquidation event” in the term sheet) are divided between shareholders, according to their share classes.