Full Definition
Cap table management refers to the process of accurately tracking and managing a company's equity ownership structure, including all shareholders, option holders, convertible instruments, and how ownership changes over time.
Cap Table Management Tools
- Carta: The industry standard for cap table management, 409A valuations, and equity administration
- Pulley: Modern cap table management platform popular with startups
- AngelList Stack: Cap table management integrated with AngelList's fundraising tools
- Spreadsheets: Common for very early-stage companies (but error-prone)
When to Professionalize
Most startups should move from spreadsheets to dedicated cap table software at or before the seed round. Errors in cap table management can cause serious problems during due diligence and fundraising.
Real-World Example
A startup migrates from a Google Sheets cap table to Carta after their seed round, issuing their first employee stock options through the platform.
Related Terms
A spreadsheet showing the equity ownership, dilution, and value of shares in a company.
Ownership interest in a company, represented by shares of stock.
The reduction in existing shareholders' ownership percentage when new shares are issued.
The right to buy company shares at a predetermined price, commonly used as employee compensation in startups.
An independent appraisal of a private company's fair market value, required for setting stock option exercise prices.
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