Tag: capitalization table

Why You Need to Manage Your Cap Table Plus Free Tools to Help
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Why You Need to Manage Your Cap Table Plus Free Tools to Help

Bookkeeping is tedious, confusing, and often the last thing on an entrepreneur's mind. Yet, understanding the basic elements of startup finance is critical. That comprehension starts with learning how to manage your startups’ cap table.Let’s talk about what a cap table is, how founders typically manage it, and three free online tools you can use to make managing your cap table easier. What Is a Cap Table? A capitalization or “cap” table is a spreadsheet showing the equity capitalization for a company. Most commonly used by startups and early-stage businesses, the cap table breaks down the distribution of a company’s shareholders’ equity.A basic capitalization table lists out each type of equity ownership capital, the individual investors, and the share prices. Your cap table shou...