Capitalization table is designed in a simple, organized manner that answers the question who owns which securities (at which price) and which securities are outstanding. Because a company is constantly evolving, its capitalization table must be continuously updated as well. For example, selling new shares of an existing security, issuing shares of a new security, increasing the option pool, or granting options to an employee all change the capitalization table. Likewise, terminating options when an employee leaves the business, letting options expire, having an investor exercise vested options, or having an investor redeem, transfer or sell shares are also instances that alter the table. Because every financial decision the entrepreneur makes impacts capitalization, an accurate capitalization table is necessary to make informed decisions based on the most current information. For example, when considering a new source of funding, the entrepreneur must take into account various pre-money valuations, round sizes and option pool targets, all of which are listed on the capitalization table.
The model is available as PDF or Excel model.
|Industry||All Industries, General Excel Financial Models|
|Summary||A capitalization table is a spreadsheet or table, typically made for a startup or early stage venture, that shows capitalization, or ownership stakes, in a company, including equity shares, preferred shares and options, and the various prices paid by stakeholders for these securities.|
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|Use Cases||Cap Table, Excel|