A capitalization table — often known as “cap table” — shows a breakdown of your startup’s ownership by stakeholder. A cap table makes it easy to ascertain who owns what, and it helps you and investors understand your firm’s capital structure.
A capitalization table can be defined as a table showing the equity ownership capitalization for a company. Capitalization tables help private companies maintain the calculation of their market worth. In the private market also, they are crucial for shareholder reporting and new capital issuance marketing.
When a company got incorporated, your cap table will likely only contain the promoter’s ownership stakes. But promoters have a lot on their plates and as your company scales, it’s likely for cap table management to fall through the cracks. Neglecting your cap table can be often disastrous so don’t be afraid to ask for help or have an expert manage it for you.
How Bluebox can help?
With Bluebox, we assist you updating your cap table when you issue electronic securities, raise a round, or get a ESOP valuation. So you can always trust Bluebox as your source of truth for equity ownership.We offer comprehensive support for all security types and your cap table will get updated every time with no additional work.