what is a capitalization cap table 
a capitalization table is a spreadsheet or table that shows the equity capitalization of a company it s also known as a cap table and is most commonly used for startups and early stage businesses but all types of companies can use it as well the capitalization table is generally an intricate breakdown of a company s shareholders equity cap tables often include all of a company s equity ownership capital such as common equity shares preferred equity shares warrants and convertible equity understanding a cap tablea basic capitalization table lists each type of equity ownership capital the individual investors and the share prices a more complex table may also include details on potential new funding sources mergers and acquisitions public offerings or other hypothetical transactions capitalization tables are typically used privately by private companies to provide information on a company s investors and market value 1here s an example a capitalization table shows the total market value of a company and its components it s considered a key point of reference for business managers in every financial decision that has an impact on market capitalization and the company s market value it s important for the capitalization table to be accurate customized to the business s needs and regularly maintained for decision making based on the most current information a capitalization table is a simple organized document that displays the total ownership capitalization of a firm creating and maintaining a cap tablea cap table can be viewed in conjunction with the shareholders equity portion of the balance sheet which also details the equity capital structuring of a firm the capitalization table shows each investor s equity capital stake in the business which is calculated by multiplying the share price by the number of shares owned the names of the security owners will be listed on the y axis in most cases and the types of securities will appear on the x axis all holdings of each investor should be in a single row the listing of investors can be done in a few ways and may depend on the targeted audience some cap tables may list investors by founders first followed by executives and key employees with equity stakes then other investors such as angel investors venture capital firms and others who are involved in the business plan a capitalization table may choose to list investors in descending order by ownership showing the largest holders at the top instead special considerationscompanies constantly evolve so their capitalization tables must be continuously updated startups run several funding rounds to support capital needs they also issue stock options to attract talent all these actions change the capitalization table terminating options when an employee leaves the business can also alter the table as can letting options expire having an investor exercise vested options or having an investor redeem transfer or sell shares 