Cap Table
A document that records a company’s shareholders and each person’s corresponding ownership percentage, as well as the type of share class.
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What is a Cap Table?
A cap table is a document that records a company’s shareholders and each person’s corresponding ownership percentage, as well as the type of share class.
A cap table that is highly diluted means the founders have given up a large percentage of the company. On the other hand, a highly crowded cap table means having a large number of shareholders. In either case, an investor may consider this a red flag and be discouraged from investing.
